Is there a way for Hungary to reduce its dependency on Russian energy?
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Hungary’s strong dependence on Russian oil and gas is a heritage of the Communist era. The change of the regime could not make a difference. Only the security of supply developed thanks to cross-border pipes and a strategic gas store inaugurated in 2009. But is there a way to become free from Putin’s gas and oil deliveries?
According to 24.hu, Hungary imports 90 pc of its oil and 80 pc of its gas demand. Russia’s share in the imports of both goods is dominant. 24.hu says there are many statistics regarding the energy dependency of the EU member countries. They show that Hungary is probably not the most dependent one but it is still high on the list. After Russia had invaded Ukraine, Moscow started to send the needed gas through the TurkStream (Russia-Turkey-Balkans) pipeline system. Therefore,
the gas used in Hungary does not flow through Ukraine. Instead, it comes from the direction of Serbia.
The country’s oil dependency is not that significant. However, it became clear in March that even MOL would not be able to process, in sufficiently large quantities, other types of oil than the Russian one without a hundred million USD investment and several years of alteration work. That is understandable. The dependency on Moscow developed in 60 years. Diversification cannot be done within a couple of months.
In the case of the oil, it was the Communist regime that opted for the Soviet oil. When Moscow hesitated about where they wanted to build their new oil pipeline (Friendship I), the Kádár regime acted quickly to close a successful deal. The reason was that water caused more and more problems in the oil fields in Zala county. Soviets built the Friendship II pipeline in 1972.
Interestingly, the Hungarian Communist leadership not only used Soviet oil but also traded with it.
Miklós Pulai, a Hungarian economist, said that the state won 300 million USD on the business. As a result, Brezhnev reduced the supply unilaterally in 1981.
In the case of gas, the Hungarian demand significantly increased between 1965 and 1970. The supply came from Hungarian and Romanian sources. The number of households heating with gas doubled between 1960 and 1970. Furthermore, the average consumption also rose. However, the highest increase was in the chemical industry, construction sector and machinery industry.
There is absolutely no way to reduce the Hungarian peoples dependence on Russian petroleum and natural gas that will not further damage the Hungarian economy and hurt the poorest people of Hungary. We are going to have to get along with our neighbours including Russia. If our American friends would mind their own business and stop meddling in the politics of Europe and the entire globe their would be no conflict between Russia and Ukraine. Even if Hungary never purchased another drop of Russian petroleum or gas there are no facilities to handle the volumes of product that would have to be shipped across the oceans to supply our needs not mention ships and crews.
Why should we in the first place? To get dependent on Yankee oil? We all know what that leads to … no thanks. Russia is our strategic partner and has not broken any promises, unlike the warmongers in the West. Our future is the East, the West is already on life-suport, endless printing of fiat will only speed up that funeral …