Will Hungary make Romania Moscow-dependent by gigantic gas deal? Romanian secret services may join the “game”
The Romanians do not want to buy or even let in Russian gas because they do not want to become dependent on Moscow, Romania’s energy minister, Sebastian Burduja, made his government’s standpoint clear when speaking to Financial Times. Hungarian MVM announced they would buy 68% of German E.ON Energie Romania shares, but it seems the Romanian government will intervene and prevent the transaction due to MVM’s Russian connections. Among others, Hungarian state-owned MVM is the biggest purchaser of Russian gas in Hungary, and they are managing the expansion of the Paks II NPP, built using Russian technology and money. Will MVM’s gigantic gas deal be killed?
Hungarian state-owned MVM’s gigantic gas and electricity deal
After the announcement of the possible acquisition by Hungarian MVM, the Romanian government came under political attacks, which Energy Minister Burduja dismissed by saying that the transaction was incomplete. The Romanian government also issued a new decree that authorised them to reject the deal after a thorough investigation. Burduja promised to conduct such a review on the matter, and, provided they find anything suspicious, block it. To calm citizens, he added that the critical infrastructure was not involved in the transaction.
It seems that MVM wants to close the business ASAP. Based on market information, the cost they offered, allegedly EUR 205 million, for 68% of the Romanian E.ON’s shares, is well over their market price. As a result, local companies like Romgaz, OMV Petrom or Hidroelectrica did not enter the competition. Transtelex added that the MVM purchase had two aims.
First, they would like to get a direct link to Romanian consumers. In the gas market, that would mean supplying 40% of the Romanian customers, while in the electricity market, that rate is 15%. Second, they would like to secure that market for Russian gas. As a result, we can say that the deal is of geopolitical importance for Hungary.
PM Orbán offered to set up a joint committee
The two prime ministers talked about MVM’s possible transaction in Romania when they met in Bucharest last December. Orbán and Ciolacu met two more times last year: in July in Bucharest, and in November in Budapest.
We have no information on what they discussed about the acquisition, but Energy Minister Burduja seems committed to keeping the transaction under his magnifying glass and making it transparent. PM Orbán said the same after meeting with Ciolacu and proposed the setup of a joint committee to oversee the transaction, calm nerves, answer all questions and satisfy additional needs. Burduja told the Financial Times that even Romanian secret services would be involved in the MVM’s risk evaluation process.
Will Hungary make Romania Moscow-dependent by a gigantic gas deal?
Prominent Romanian politicians are concerned due to the possible deal because they believe MVM would supply Russian gas to their Romanian customers, which would make the country dependent on Moscow. Burduja said that a similar investigation baulked the Spanish Talgo acquisition by the Dunakeszi Járműjavító, due to the Hungarian company’s Russian ties.
According to 444.hu, Hungarian state-owned MVM is the biggest Hungarian purchaser of Russian gas, and they manage the Russian expansion of the Paks II NPP, as well. MVM told media outlets that they cooperated with the Romanian authorities but they did not want to make any additional comments on the matter.
Read also:
- Romanian PM Ciolacu praises PM Orbán’s efforts concerning Schengen accession
- Spain blocks Hungarian Talgo train factory deal over Orbán’s Russia ties
- Shocking decline: How Hungary fell behind its neighbours after joining the EU
Hungary is tainted from head to toe on any kind of possible foreign transaction as the same name keeps coming up – Russia. Hungary really is a pariah in the EU.
Hungary – over the course of (16) sixteen years, that has EXPLODED to become a country, under the Prime Ministership of Victor Orban & his Fidesz Government, besides being DROWNED in the Toxic Cultures – that sees us as a country the “Judas” of the word – DEMOCRACY.
The “scary” unknown for us as a country, a country, that FIGHTS for survival, a FUTURE of any life quality – is through the “Heinous” practices of the Orban led Fidesz Government, that have DELIVERED us as a country to the SHAMBOLIC Mess and Economic and Financial CHAOS we are to-day, what STILL is to be REVEALED – come out, that reverts back to deepens HIGHLIGHTING, the ABUSE, the DISHONEST under takings, conduct & practices INFLICTED upon us, the population of Hungary and on our country – Hungary.
P.M. Orban has only been Hungary’s leader for 14 years The “Judas” of DEMOCRACY. Anti-Hungarians and pro-Brussels’ puppets seldom check data. If your basic data is wrong, your conclusions are useless.