energy

Hungarian minister calls for further diversification of energy resources, transport routes

szijjártó bucharest


Politically motivated energy sanctions are killing Europe’s competitiveness and have a serious impact on living standards as well, so it is necessary to involve new resources and transport routes as soon as possible, Minister of Foreign Affairs and Trade Péter Szijjártó said in Bucharest on Monday.

Speaking at the European Gas Conference, the minister said Europe was facing a major energy crisis today because the liberal mainstream was approaching issues of an exclusively physical nature from an ideological perspective.

He said it was important to involve new resources and create new transport routes, and spoke out against energy sanctions and restrictions, arguing that the discrimination of certain suppliers for political reasons had a serious impact on Europe’s competitiveness and standards of living.

Szijjártó then touched on criticisms regarding the purchase of Russian natural gas and argued that in such a strategic sector, it is only worth changing the procurement direction if there is a better – more affordable and more reliable – offer.

“That is why we will not give up on energy cooperation with Russia. And that is why we are protecting the TurkStream pipeline, which is currently the most important guarantee for the security of our supply, in every way,” he added.

Szijjarto said Hungary was ready to buy liquefied natural gas from Qatar from 2027, and deliveries of Turkish and Azeri gas to Hungary started last year.

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He pointed out that the capacity expansion of the energy network would be necessary in Southeastern Europe for the sake of effective diversification and the countries of the region have turned to the European Commission for financing the development, but they have been turned down by the Commission.

Finally, the minister also touched on the extraction of the new Romanian gas field, which, he said, filled Hungary with great hopes.

However, he added that two commercial contracts had been signed under which the first deliveries should have arrived in 2024, but for certain reasons the US company in question withdrew.

“We hope that the Neptun Deep project will be successful this time. We hope that we can reach commercial agreements and we can add the new Romanian resources to Hungary’s national energy mix,” Szijjártó concluded.

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Minister Szijjártó: More Hungary-Romania border crossings planned, closer energy cooperation

romania hungary cooerpation

The Hungarian and Romanian governments plan to increase the number of border crossings with the aim of ending long waiting times, the minister of foreign affairs and trade said on Monday in Bucharest, adding that both sides were committed to further developing mutually beneficial cooperation.

Schengen: new border crossings, new railway line

After talks with several members of the newly inaugurated cabinet, Péter Szijjártó spoke of the strategic importance of developing cross-border infrastructure.

A ministry statement noted that Romania became a full-fledged member of the Schengen Area during Hungary’s EU presidency and border controls were “finally eliminated”, reducing “uncertainty resulting from long waiting times”.

Szijjártó welcomed the increase of crossings from 12 to 22, thereby reducing the average distance between crossings from 37km to 20km.

An agreement on opening further crossings is in the pipeline, and the two countries have signed an agreement on rebuilding the bridge in Magyarcsanád and constructing a new railway line between Szeged and Timisoara (Temesvár), he noted.

Szijjártó also praised Romania as “one of Hungary’s most important economic partners” and its third largest export market. Hungarian companies such as Hell, Mol, Wizz Air and Richter are market leaders in Romania, he added.

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Historic moment: Border opens between Romania and Hungary

Energy cooperation between Hungary and Romania

Energy cooperation between the two countries, he said, greatly enhanced the security of supplies for both countries, adding that he and the ministers reinforced their commitment to further strengthen bilateral ties in the sector. The Hungary-Romania interconnector piped 1,7 billion cubic meters of gas to Hungary last year, and Romania is preparing to tap a new sea gas field. “If all goes well”, this could provide new resources in central Europe by 2027, he added.

“In this new situation, we have a vested interest in expanding gas trade cooperation. The relevant talks are already under way between our companies,” he said.

Meanwhile, a JV has been set up in preparation of Hungary’s cooperation with Azerbaijan, Romania and Georgia to import green energy from the Caucasus region, Szijjártó said.

New government

The minister also welcomed the inclusion of Romania’s Hungarian RMDSZ party in the new cabinet, saying hopes were hight that this would greatly improve bilateral cooperation. RMDSZ also heads the “two important ministries” of development and finance, he noted.

“There’s no doubt in Romania … that the politicians of RMDSZ are trustworthy and will add considerable value to the government’s performance,” he said.

In talks with Romanian counterpart Emil Hurezenau, Szijjártó said the focus would fall on pragmatic cooperation, and they were in agreement that central Europe needed peace, development and stability.

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PM Orbán: new energy crisis looming, so he travelled to Serbia

PM Viktor Orbán and Serbian President Alaxandar Vucic

Prime Minister Viktor Orbán will hold talks with Serbian President Aleksandar Vucic in Belgrade on Saturday, the PM’s press chief told MTI.

Energy security will be the most important topic

The energy security of the countries as well as the region will be the most important topic at the talks, said Bertalan Havasi, noting serious challenges posed by U.S. crude sanctions and steps by Ukraine to restrict transit deliveries of Russian gas. The talks will also touch on bilateral ties, including cooperation in the areas of economy, transport and defence, he added.

In a Reels video shared after Orbán’s arrival, the prime minister said Europe was heading towards a new energy crisis due to the US sanctions and Ukraine’s decision not to transfer gas on the Druzhba pipeline.

Viktor Orbán Alaksandar Vucic
Photo: FB/Vucic

Hungary, Serbia affirm strategic energy cooperation

Hungary and Serbia have affirmed their strategic cooperation in the area of energy, the foreign minister said after a bilateral summit in Belgrade on Saturday. In a statement issued by his ministry, Szijjártó said both countries aimed to ensure secure energy supply at competitive prices, while Hungary wanted to maintain its regulated household utilities price scheme.

He pointed to recent decisions that had weighed on energy supply in the region, such as new sanctions introduced by the “failed Democratic administration” in the U.S., the halt of gas transit deliveries via Ukraine and attacks on the TurkStream gas pipeline. He added that Hungary’s insistence on the construction of the TurkStream had contributed to the country’s energy security as had the establishment of interconnectors with the gas networks of six of its seven neighbours.

Serbia also gets most of its gas through the TurkStream and the secure and reliable operation of the pipeline is in the common interest of both countries, he said, highlighting the importance of a strategic cooperation between Hungary and Serbia based on mutual respect and trust.

He noted that an agreement had been reached to accelerate joint energy infrastructure investments and said capacity of an interconnector between the two countries’ electricity grids would be doubled by 2027 or 2028. A crude pipeline between Serbia and Hungary could be completed in around three years, he added. He welcomed the start of operation of a joint Hungarian-Serbian-Slovenian power exchange.

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Hungary becomes regional distributor of Russian gas, generating windfall revenues

Hungary became the distributor of Russian gas in the region, generating high revenues for some companies

Hungary’s emergence as the regional distributor of Russian gas amidst the ongoing Russia-Ukraine war and escalating tensions between Russia and NATO has raised concerns, particularly for Slovakia. The arrangement has led to significantly higher costs for Slovakian consumers, while certain Hungarian companies are reaping substantial profits from the transactions.

Your only option is Hungary to buy Russian gas

Following the cessation of Russian gas transit via Ukraine to Central Europe on 1 January, the region now depends solely on the TurkStream pipeline. This pipeline, which enters Hungary near Kiskundorozsma from Serbia, has become the primary route for gas deliveries. Analysts suggest that Hungary’s long-standing strategy of fostering close energy and political ties with Russia has paid off in this new arrangement, as reported by Hvg.hu.

The Kiskundorozsma interconnector, with a capacity of 8.5 billion cubic metres, is fully utilised by Hungarian state-owned MVM and energy company MET. These entities manage gas trade, storage, and redistribution, selling Russian gas to Ukraine, Slovakia, and Austria. Serbia also rents Hungarian gas storage facilities, further enhancing Hungary’s geopolitical influence in the region.

Attila Holoda, a Hungarian expert on energy policy, explained that Hungarian Földgázszállító Ltd benefits from gas transit revenues, particularly in Slovakia. With 300,000 cubic metres of gas flowing northward each hour, the profits are significant. Slovakian consumers are now paying more for gas transiting through Hungary than they did for gas delivered via Ukraine.

Hungary became the distributor of Russian gas in the region, generating high revenues for some companies
Illustration. Photo: depositphotos.com

Slovaks face higher costs

Previously, Slovaks paid transit fees only at the Ukrainian-Slovakian border. Now, they must pay additional fees from the Serbian-Hungarian border, further increasing costs. Holoda criticised the Slovakian government for failing to negotiate an agreement with Ukraine to avoid such an unfavourable situation. Instead, Slovak Prime Minister Robert Fico has prioritised discussions with Russian Foreign Minister Sergei Lavrov.

Complicating matters, Fico’s strained relationship with the Polish government makes the prospect of receiving liquefied natural gas (LNG) from Poland unlikely. Even if feasible, this option would prove more expensive than the former Ukrainian transit route.

Gas energy oil Russia Hungary
Photo: FB

Hungary appears to be capitalising on this new arrangement. According to Szeretlek Magyarország, Slovakia is likely purchasing gas from capacities pre-reserved by Hungary, which were secured at a discounted rate of 10-15%. This strategic over-purchasing has allowed Hungarian companies to generate substantial profits, as Slovakia has no alternative but to buy Russian gas routed through Hungary.

Ukraine-Slovakia gas agreement on the horizon?

There remains a possibility that Ukraine and Slovakia could reach an agreement to restore gas transit between the two countries. Ukraine has suffered significant financial losses since the transit halt, with 85% of its transit revenues in 2024 tied to Russian gas flows, Szeretlek Magyarország points out.

However, Holoda speculated that Ukraine might resort to targeting the TurkStream compressor stations in Russia. These stations rely on Western technology, which could prove difficult for Russia to repair if damaged. Hungarian Foreign Minister Péter Szijjártó has emphasised that the safety of the TurkStream pipeline is a matter of national sovereignty for Hungary, underscoring its critical importance to the country’s energy security.

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Featured image: depositphotos.com

Ukraine’s proposed ban on Russian oil transit raises concerns for Hungary and Slovakia

russian gas, gazprom Szijjártó

The Ukrainian parliament is considering a bill to halt the transit of Russian oil and gas through its territory, a move that could significantly impact Hungary and Slovakia. The opposition European Solidarity Party, led by former Ukrainian President Petro Poroshenko, introduced the proposal, citing national security concerns and the desire to limit Russia’s revenues used to finance the ongoing war.

Key provisions of the bill

Registered as Bill No. 12380, the legislation seeks to prohibit Russian oil and gas transit through Ukraine’s infrastructure, including the Druzhba (Friendship) pipeline, which supplies Hungary and Slovakia. An accompanying resolution urges the Ukrainian government to develop a detailed cessation plan within 30 days and to implement the full transit halt within three months, Liga.net reports.

The bill, however, allows exceptions for obligations under international agreements or decisions by the European Union. In addition, it calls for assessing the economic, social, and environmental consequences of such a move and coordinating with international partners to mitigate diplomatic or economic fallout.

russian gas, gazprom Szijjártó Russian oil
Photo: depositphotos.com

Background: Hungary and Slovakia’s reliance on Russian oil

The Druzhba pipeline’s southern branch, exempted from the EU’s 2022 partial embargo on Russian oil, remains a crucial energy source for Hungary, Slovakia, and the Czech Republic, G7 writes. While the Czech Republic plans to end its Russian oil imports by 2025, Hungary and Slovakia have not announced similar measures. In fact, both nations have increased their imports of Russian oil in recent years.

Hungary’s government has been vocal about its opposition to ceasing Russian energy imports, emphasising the economic challenges such a move would create. Hungarian Foreign Minister Péter Szijjártó responded to the Ukrainian proposal by warning that Ukraine’s EU accession bid requires unanimous approval from member states, urging Ukraine not to jeopardise its relationship with EU countries through unilateral decisions.

Broader implications

The current agreement for Russian oil transit through Ukraine, signed by Ukrtransnafta and Russia’s Transneft, remains valid until 1 January 2030. However, the transit of Russian gas through Ukraine ceased on 1 January 2025, following the expiration of a separate contract between Gazprom and Naftogaz.

Energy analysts suggest that halting oil transit could have severe repercussions for Ukraine. While the proposal aims to weaken Russia’s economic footing, Ukraine itself relies on transit fees as a significant source of revenue. “Such a move could lead to substantial losses for Ukraine,” remarked Balázs Jarábik, an analyst at the Vienna Institute for Human Sciences.

EU’s energy transition

The EU plans to completely phase out Russian oil and gas imports by 2027, giving Hungary’s MOL Group enough time to adjust its refineries for alternative sources. However, Hungary’s government has shown little inclination to accelerate this transition. Despite the ambitious goals of the European Solidarity Party’s proposal, experts believe the bill is unlikely to pass. Some speculate that if Ukraine decides to halt oil transit, it may occur indirectly through technical disruptions rather than formal legislation.

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Featured image: depositphotos.com

Hungary and Serbia to boost energy cooperation with strategic investments

Dubravka Đedović péter szijjártó serbia energy

Serbia is a partner of “strategic importance” for Hungary, Minister of Foreign Affairs and Trade Péter Szijjártó said on Wednesday, after talks with Dubravka Đedović, Serbia’s energy minister.

“In light of lessons learnt in recent weeks, we agreed in the course of our phone conversation to accelerate our joint energy and energy security investments, including the establishment of another interconnector between the two countries’ electricity grids and the construction of the first crude pipeline,” Szijjártó said in a post on social media. Energy crises in recent years, often the product of politics, show that countries that lack mineral and energy resources need to work closely together to ensure their energy security, he said, calling out certain global players for disregarding the difficulties caused for their allies by sanctions and restrictions.

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Fidesz MEPs demand action from Brussels against gas market speculations

An MEP of ruling Fidesz said on Tuesday that clear action was needed by Brussels against high energy prices and gas market speculation.

Fidesz MEPs call on EC for action against gas market speculation

András Gyürk said he had submitted written questions to the European Commission on behalf of the Fidesz group, adding that the EC had done nothing when gas transits through Ukraine were stopped at the beginning of the year.

He said that before starting its term, the EC led by Ursula von der Leyen had promised to reduce energy prices, yet in the past three months European gas prices have increased by around 20 percent. He added that despite the promises from Brussels, the market price of natural gas had increased by one-fifth since November.

“The bureaucrats watched idly as 15 billion cubic metres of natural gas was lost from the European market after the Ukraine gas transits stopped,” he said. “They also failed to act against the gas market speculation that resulted in increased prices when gas storage facilities were filled in the summer,” he added. “This is incomprehensible and it is the reason why we have turned to the European Commission with written questions,” he said.

“We expect concrete practical steps to be planned by the European Commission against speculation that makes summer gas acquisitions expensive,” he said. “Additionally, we expect information from Brussels concerning whether they plan to offer financial and technical support to East European countries affected negatively by the stoppage of Ukraine gas transits,” he added. Reducing energy prices is crucial to ensuring economic competitiveness and the welfare of citizens, Gyürk said.

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Hungarian Energy Minister: Government to offer new subsidies for energy storage

Domestic support for energy storage may soon increase to more than HUF 300bn, with several large storage facilities likely to be inaugurated this year, Energy Minister Csaba Lantos said in an interview with business daily Világgazdasag.

Lantos said through currently running applications, families and businesses are being supported by HUF 260bn of funding for investments into green energy production and storage, and this amount could soon exceed HUF 300bn. The minister noted that HUF 33bn was provided for system operators and distributors to install grid-integrated energy storage systems. In another tender, for a wider range of companies, contracts are being signed to support the completion of 50 facilities in 2026 with HUF 62bn of state contributions. Lantos said Hungary’s solar energy capacity has surpassed 7.5 GW. By 2030, they are calculating that there will be 12 GW of solar plants, but additional network investments will be needed to connect this capacity to the grid.

The minister said combined cycle gas turbine power plants will help reduce import exposures and greatly contribute to strengthening energy sovereignty and supply security. With plans for a 600 MW pumped-storage power plant, smaller 100 MW ones are also being considered. Lantos said HUF 10bn will be allocated to mitigate the financial risks of geothermal drilling and to modernize existing thermal wells. Two district heating tenders are planned, one to help the sector’s transition to green technology with HUF 50bn, he added.

Talking about the stability of Hungary’s oil and gas supply, the minister said the majority of fossil fuel shipments now arrive from the south, the complete loss of imports from the east does not pose an immediate risk to supply security. Hydrocarbon drilling concession applications for eight areas will be relaunched in January after a five-year hiatus to boost domestic production, he added.

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Will Hungary make Romania Moscow-dependent by gigantic gas deal? Romanian secret services may join the “game”

PM Orbán and PM Ciolacu in Budapest after snowfall Romania

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.

PM Orbán and PM Ciolacu in Budapest after snowfall Romania gigantic gas deal
PM Orbán and Romanian PM Ciolacu above the snowy Budapest on 22 November. Photo: MTI

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.

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Russian gas supplies through Ukraine to Europe face sudden halt – Unexpected opportunity for Hungary?

russian gas supply, gazprom

The halt of Russian gas supplies through Ukraine has shaken Europe’s energy landscape, but Hungary’s strategic investments in the Turkish Stream pipeline and interconnectors have positioned it as a key transit hub. With its gas system tripling in value, Hungary could capitalise on this shift if it improves its regulatory environment.

Russian gas supplies face sudden halt

Index reports that Russian gas supplies from Ukraine to Europe have come to a sudden halt, dramatically shaking up the region’s energy dynamics. Hungary, in particular, has seen the value of its gas system triple almost overnight, according to a market insider. This shift follows Gazprom’s announcement on 1 January that it can no longer transport gas through Ukraine due to legal and technical constraints, forcing the pipeline to shut down.

russian gas energy hungary
Illustration: depositphotos.com

Ukraine has said it’s willing to reopen the route, but only if the gas isn’t Russian and payments are postponed until the war ends. Meanwhile, Hungary still gets Russian gas through the Turkish Stream pipeline. The disruption has also uncovered long-hidden financial details, with Ukraine losing USD 800 million (EUR 774 million) a year and Russia taking a massive USD 6 billion (approximately EUR 5.8 billion) hit. Amid this geopolitical turmoil, Hungary finds itself in a position to make the most of this unexpected opportunity.

Tension is rising in Slovakia too

The halt in Russian gas supplies through Ukraine has caused economic turmoil across Europe, with Slovakia losing an estimated USD 600 million (EUR 580 million) annually in transit fees and tensions rising over Slovak Prime Minister Robert Fico’s visit to Moscow, which angered Ukrainian nationalists. While Austria and Slovakia feel the brunt of the contract’s termination, Hungary has shifted to the Turkish Stream pipeline. The EU, once supportive of previous agreements, is now hesitant to back extensions, leaving Europe to consider three options: replacing Russian gas with LNG, sourcing Azeri gas via Ukraine, or negotiating a new agreement between the EU, Ukraine, and Russia.

Hungary still relies on Russian gas

The disruption of Russian gas supplies has escalated risks, with Ukraine seizing the Suzda metering station and concerns that pipelines could become military targets. Despite this, Hungary remains reliant on Russian gas, securing 6.7 billion cubic metres this year through a long-term contract signed in 2021. At the St Petersburg Gas Forum, Foreign Minister Péter Szijjártó emphasised the physical necessity of energy supply over ideology and reiterated Hungary’s commitment to diversifying routes while ensuring competitive pricing.

russian gas, gazprom Szijjártó
Photo: depositphotos.com

Hungary’s unexpected opportunity

Hungary’s strategic role in the transport of Russian gas to Europe has grown significantly following the phasing out of Nord Stream pipelines and the shutdown of the Russian-Ukrainian-Slovak transit. The Turkish Stream pipeline, entering the EU via Hungary’s Serbian border, remains the sole route for Russian gas to Europe. Recent investments in interconnectors, including a Hungarian-Slovenian agreement in 2023, have further enhanced Hungary’s gas infrastructure, tripling its value. Market experts suggest Hungary could become a major gas trading hub if it improves regulatory predictability and reduces trader-deterring fees like the surveillance charge of the MEKH (Hungarian Energy & Utilities Regulatory Agency). With its strengthened position, Hungary has the potential to become a regional leader in the gas market.

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Featured image: depositphotos.com

Fresh data: Hungarian gas consumption increased slightly last year

radiator energy consumption gas

Hungary’s gas and electricity consumption remained largely unchanged in 2024, signalling stable energy use despite ongoing challenges. The country’s electricity consumption reached 41.9 terawatt-hours (TWh), marking a modest 2.2% increase from the previous year. Gas consumption rose slightly by 0.8%, or 68.3 million cubic meters, continuing a trend of significant savings compared to pre-energy crisis levels. Notably, Hungary’s gas usage was still about 25% lower than before the crisis.

The Energy Ministry emphasised that these reductions in energy use contribute to increased energy sovereignty and supply security, supporting Hungary’s environmental goals. Household solar panel capacity reached nearly 2,700 MW by the end of 2024, covering around 6.6% of the country’s total electricity needs. On sunny days, this share could rise to about 9%.

Despite the slight increase in consumption, Hungary’s energy savings have led to lower reliance on imports, contributing to stronger energy security. The country’s large gas storage capacity, currently 4.5 billion cubic meters, ensures reliable supply even amid disruptions in regional gas transit.

Looking ahead, Hungary’s government will continue supporting energy efficiency with initiatives such as the home renovation program, set to provide up to HUF 6 million (EUR 14,500) in subsidies starting January 2025. This ongoing commitment helps protect households from volatile international energy prices, keeping Hungary among Europe’s lowest-cost electricity and gas consumers.

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Featured image: illustration, depositphotos.com

Hungarian minister Szijjártó criticises Ukraine’s proposal to close energy transit routes as ‘unacceptable’

szijjártó ukraine energy transit route

Péter Szijjártó said in a post on Facebook that Ukraine’s foreign ministry had reacted “rather aggressively” to news reports on Tuesday on rising gas prices resulting from the decision to scrap the transit route leading through Ukraine. Meanwhile, on Wednesday, he added, Ukraine’s parliament had registered on its website a bill aimed at closing oil and gas delivery routes from Russia during a state of war.

“With respect, we must remind our Ukrainian colleagues that there is a reality that exists and that there are rights and obligations,” the minister said. He said the reality was that the admission of new European Union members required the unanimous approval of existing member states. Szijjártó also said that all countries had the sovereign right to decide from what source and via which route they buy and access the energy needed for their operations. He said that no outside entity had a say in this, and no one had the right to force “more expensive and less reliable” energy imports onto another country.

Meanwhile, he said that a country that signs an association agreement with the EU and wants to join the bloc has an obligation to contribute to the community’s energy security by ensuring the necessary delivery routes. That was why, he said, the closing of either natural gas or crude delivery routes was “unacceptable” and went against expectations that have to be met when it comes to EU integration.

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Orbán cabinet defends utility price cap amid gas price hike, strongly criticises EU and Ukraine

gas energy hungary government

The government is protecting utility price reductions even after the 20 percent rise in gas prices in Europe on the back of Ukraine’s decision cease gas deliveries from Russia, the minister of foreign affairs and trade said on Tuesday.

“By now even the most fanatic Brusselites don’t contest that the European Union’s competitiveness had deteriorated sharply,” Péter Szijjártó said on Facebook. Gas prices, which are now higher in Europe than in most competing countries, are one of the main reasons for this, he added.

“At the same time, European natural gas prices have increased mostly due to measures that deliberately cut the amount of gas delivered, such as sanctions or other political steps to cut out certain resources or the closing of certain delivery routes,” he said. “Europeans are clearly the ones most harmed by those measures.”

Meanwhile, Hungary made an effort to diversify its delivery routes in recent years, Szijjártó said, adding that this ensured the security of energy supplies, “even if we do feel the impact of rising European prices”. Since the decision to scrap the transit route leading through Ukraine to central and eastern Europe in mid-December, the price of gas in European markets has jumped by 20 percent, he added.

“Ukraine’s decision has again put the European economy in a difficult situation, even though the country is a candidate for accession,” he added.

Szijjártó said that since Ukraine’s move had been especially harmful to central Europe, he had discussed the situation with Slovak counterpart Juraj Blanar. “We were in agreement that the EU-Ukraine Association Agreement should be honoured by both parties, and that the pact also has provisions on keeping up energy delivery routes.”

related article – Support from Brussels: Hungary to expand renewable energy in district heating with €238M investment plan

Szijjártó said that during the debates surrounding the construction of the TurkStream pipeline a few years ago, “we were threatened by our allies, who tried to dissuade us from the investment in a friendly way,” he said. Landlocked Hungary would now be in a tight spot had it not withstood the “friendly” pressure then, Szijjártó said. He said that under the current circumstances, Hungary’s energy supply was secure. At the same time, he said that Ukraine’s decision to turn off the gas taps had led to higher prices, posing yet another challenge to the competitiveness of central Europe and the EU.

“Still, Hungary will continue to protect the achievements of its utility price caps, even in this challenging environment, and we will continue the cooperation with our partners in the region,” he said. As we wrote earlier, breaking the myth, Russian gas costs Hungary more than alternatives.

related article: Solution to problems caused by US sanctions on Gazprombank close, says Hungarian minister

Breaking the myth: Russian gas costs Hungary more than alternatives

russian gas energy hungary

Hungary’s heavy reliance on Russian gas, rooted in Cold War-era infrastructure, has made the country politically and economically vulnerable. While neighbouring countries have significantly reduced their dependence on Russian energy, Hungary has taken a different approach, maintaining high levels of imports despite the growing evidence that Russian gas is not cheaper than Western alternatives.

Others recognised the problem in time

Hungary’s persistent reliance on Russian gas has increasingly drawn criticism, especially as other Central European countries have successfully diversified their energy sources. According to Piac és Profit, rooted in infrastructure developed during the Cold War, this dependency has exposed Hungary to economic and political risks. While the collapse of the Eastern Bloc left many countries grappling with similar challenges, most have since recognised and mitigated these vulnerabilities.

The Baltic states, for example, began severing ties with Russian energy in 2014, following the annexation of Crimea. Slovakia, too, quickly cut its Russian gas imports by 44% within a year. By contrast, Hungary’s energy strategy has remained heavily dependent on Russian imports, even as Poland and the Czech Republic almost entirely eliminated direct purchases after the outbreak of the war in Ukraine in 2022.

Infrastructure development is key

Countries that moved away from Russian gas achieved this through infrastructure development, such as building LNG terminals, adopting renewable energy sources, and reducing energy-intensive industries. Hungary, however, has chosen a divergent path. The government initially justified this dependence by claiming Russian gas was cheaper, a narrative disproven as prices have climbed higher than those of Western alternatives.

russian gas, gazprom Szijjártó
Photo: depositphotos.com

Economic data reveal the consequences of Hungary’s choices. From 2022 to 2024, nations like Poland, the Czech Republic, and Slovakia—all of which reduced their reliance on Russian gas—reported higher GDP growth rates than Hungary. This suggests that moving away from Russian energy need not hinder economic development.

Hungary’s access to needed funds limited

Transitioning away from Russian gas in Hungary would require significant steps, including scaling back energy-intensive industries such as battery production, exemplified by the CATL factory in Debrecen, which consumes more electricity than the entire residential population of its county. Additionally, large-scale investments in infrastructure and energy efficiency are essential.

While the European Union’s REPower program offers support for such initiatives, Hungary’s access to these funds is hindered by ongoing rule-of-law disputes. Without substantial political will, Hungary’s dependence on Russian gas appears set to continue, despite its economic disadvantages and the successful energy transitions of its neighbours.

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Featured image: depositphotos.com

Hungarian FM Szijjártó: Energy security must be protected from unilateral actions at UN Assembly

szijjártó un energy

Hungary’s foreign minister said in New York on Thursday that the international community had to make sure that no country takes unilateral steps putting the safe energy supply of another country at risk.

The foreign ministry cited Péter Szijjártó as saying at the UN General Assembly’s session focusing on sustainable energy that meeting the radically increasing global demand for electricity was one of the world’s important challenges today. He underlined that the use of nuclear energy for peaceful purposes guaranteed a “good platform” for East-West cooperation, noting the expansion of Hungary’s Paks nuclear power plant as an excellent example of cooperation among several countries.

Hungary rejects all initiatives which are aimed at negative discrimination against nuclear energy which lack any scientific approach, any kind of fact-based approach, he said, calling them “clearly and purely ideological attacks”. He noted that Hungary was investing in increasing nuclear capacity in a way to guarantee a safe supply of electricity, ensure low energy prices, protect the environment and make Hungary independent and protected against the volatility of international energy markets.

“Hungary rejects and considers it totally unacceptable if any country makes unilateral steps to interfere in the composition of the energy mix of another country…or puts the safe energy supply of another country at risk,” he said, adding that “all countries must refrain from such steps”. “The safe supply of energy is a matter of national security, and matter of national sovereignty as well,” said the minister. Unilateral steps by any country putting the safe energy supply of another country at risk should be considered as an attack on national sovereignty,” he added.

He called it highly important that the international community makes sure that no country makes unilateral steps putting the safe energy supplies of another country at risk.

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MOL more than doubles its solar energy production with new acquisition

MOL more than doubles its solar energy production

Hungarian oil and gas company MOL on Thursday said it agreed with German-owned Optimum Vogt to acquire 100pc of Naperőmű Farm, which oversees construction of a 66 MWp photovoltaic plant in Ballószög (C Hungary).

Trial runs of the plant are expected to start in January 2025. The transaction more than doubles MOL’s renewable energy generation capacity, MOL said.

The electricity generated by the plant will be sold through listed alternative energy company Alteo. The facility will generate electricity equivalent to the consumption of 20,000 average Hungarian detached family homes.

MOL more than doubles its solar energy production
Photo: MTI

The MOL group has 6 solar parks in Hungary, with combined capacity of 31.5 MW, and it also has photovoltaic capacity of 13.6 MW in Croatia. In line with its strategy, MOL aims to increase its renewable energy generation capacity to 200 MW by 2026 at group level through further solar park investments in both countries. As part of this, MOL Petrolkémia recently announced plans to build a 48 MW solar park in Tiszaújváros, scheduled to be completed in the second quarter of 2026.

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Hungarian MVM acquires the largest Romanian electricity company

State-owned Hungarian energy group MVM has agreed to acquire a majority stake in E.ON’s retail and customer solutions business in Romania, MVM said on Monday.

Under the agreement, MVM will acquire a 68pc stake in E.ON Energie Romania, which has close to 3.4m customers, and a 98pc stake in regional service provider E.ON Asist Complet. The transaction is expected to be closed in the first half of 2025, pending approvals from the competent authorities. The transaction value has not been disclosed.

MVM said the transaction could strengthen its regional positions and E.ON said that it would now be able to focus on key strategic areas, contributing to the energy transition in Europe.

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Hungarian FM Szijjártó: Hungary, Turkiye outline ‘new strategic milestone’ in bilateral cooperation

Cooperation between Hungary and Turkiye is better and more mutually beneficial than ever, and the two countries have also outlined a new “milestone” target for the coming years, Péter Szijjártó, the minister of foreign affairs and trade, said in Ankara on Thursday.

Hungary–Turkiye cooperation

Prime Minister Viktor Orbán had talks with President Recep Tayyip Erdogan today as part of the Hungarian peace mission, “which is especially important as the only really successful attempt at mediation in the war in Ukraine in the past thousand days is connected to Turkiye,” Szijjártó said, according to a ministry statement.

“Hungary has stuck to the same stance for a thousand days. It has become certain that there is no solution on the battlefield, that a settlement is possible only at the negotiating table, and that we need a ceasefire and peace talks as soon as possible,” he said.

At the meeting, they welcomed the unprecedented heights of bilateral cooperation which, he said, benefited both countries.

Meanwhile, the two countries reached a “strategic milestone” this year, when Hungary became the first non-neighbouring country to which Turkiye exports natural gas, Szijjártó said, adding that Hungary has already bought 275 million cubic meters.

“Today, we agreed to maintain that cooperation, and Hungary will receive natural gas next year too,” he said.

Turkiye and Hungary have also outlined a new milestone, to be achieved in the coming years, he said. “An agreement was made under which the leading oil companies of Hungary and Turkiye, MOL and TPAO, will start a new strategic cooperation that will enable MOL to be involved in exploring and tap new oil fields in Turkiye and also open an opportunity to the Turkish oil company to enter the Hungarian market,” he said.

“This is the new strategic goal we must achieve in the coming years,” he said.

Meanwhile, bilateral trade has hit new records, he said. “Cooperation also extends to new sectors, with cooperation between banks and in railway construction also on the list.”

Regarding energy security, Szijjártó said Turkiye was an important contributor to securing Hungary’s natural gas supply.

“More than 7 billion cubic meters of gas has arrived in Hungary through the Turkish Stream pipeline via Turkiye. This is a good deal more than the total [deliveries] last year. This year has shown that the Turkish Stream pipeline is capable of delivering more than 20 million cubic meters a day, which is good news regarding the energy security of the coming period,” he said.

Turkiye and Hungary also agreed on coordinating the measures they will have to take due to the US’s decision to put Russia’s Gazprombank on the sanctions list, Szijjártó said.

“Cooperation between Hungary and Turkiye continues to be very beneficial … and in view of current processes and trends, we can say that next year, Hungary will profit from it even more; and so will Turkiye,” he said.

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