Foreign Minister Péter Szijjártó has stated that including Russian and Belarusian citizens in Hungary’s National Card programme does not pose a security risk to the Schengen area. He emphasised that entry and residency still require thorough background checks.
Security risk?
According to Péter Szijjártó, including Russian and Belarusian citizens in Hungary’s National Card programme does not pose a security risk to the Schengen area. Photo: depositphotos.com
Szijjártó criticised Northern European and Baltic politicians for what he describes as a campaign of misinformation regarding the National Card programme, which they claim is unsafe and could provide a loophole for Russian spies.
Non-EU citizens can work in Hungary under various permits, typically requiring either a residence permit or a National Card, 444.hu writes, based on MTI. While Ukrainian and Serbian guest workers have used the National Card previously, since 8 July, the card has been extended to applicants from eight countries, including Russia and Belarus.
National Card programme extension faces criticism
This extension has faced criticism, with experts like András Rácz raising concerns about potential national security risks, arguing that it could allow unchecked access to the entire Schengen area for Russians. Manfred Weber, President of the European People’s Party, also warned of serious risks associated with this programme extension.
The Baltic states have expressed their concerns, and the European Commissioner for Home Affairs has requested an explanation from Hungarian Interior Minister Sándor Pintér on how the Hungarian government will prevent Russian spies from entering the country.
A young Hungarian will join Rosatom’s expedition to the North Pole, marking a significant milestone for the country. The expedition is scheduled to depart on 13 August, with the ship expected to reach the North Pole by 17 August and return to the port of Murmansk by 22 August.
For the first time, a Rosatom-sponsored Arctic expedition will include young foreigners, including a Hungarian student, according to Világgazdaság. The project, named “Icebreaker of Knowledge,” will bring together young people from Russia and representatives from various countries, including Hungary. For many participants, this will be the first time their country has been represented in the Arctic.
The expedition will be conducted aboard the 50 Let Pobedy (50 Years of Victory), the flagship nuclear icebreaker of Rosatom’s fleet. This journey will take students and young professionals from 14 different countries to the Arctic as part of the Icebreaker of Knowledge project.
Photo: pixabay.com
The project’s goals are to promote science and nuclear technology, identify and nurture talented youth, develop their skills, and provide career guidance. The inclusion of international participants in this year’s expedition marks the 65th anniversary of Russia’s nuclear icebreaker fleet.
During the expedition, participants will engage in a variety of activities, including scientific lectures, experiments, and master classes. They will also learn about the Arctic’s unique flora and fauna, as well as developments along the North Sea shipping route. Upon reaching the North Pole, the young explorers will have the opportunity to fly their respective national flags.
Young people from many countries travel to the North Pole
The expedition is led by Captain Ruslan Sasov and follows the Murmansk–Franz Josef Land–Arctic route. Participants include young people from Russia, Bangladesh, Belarus, India, Kazakhstan, Cameroon, China, Kyrgyzstan, Hungary, Mongolia, Armenia, Tunisia, South Africa, and Uzbekistan.
Hungary will be represented by Levente Varga, a student at the Budapest high school named after the famous Hungarian traveller and explorer Sándor Kőrösi Csoma. Varga’s journey and experiences can be followed on social media, depending on field conditions near the coast.
Varga shared with Blikk that he has already packed the Hungarian flag and is preparing for the trip, although he admits feeling a bit anxious. “I want to do everything very well and not bring shame to the Hungarians,” he said. “I belong to a generation in Hungary that has only seen traces of snow. I don’t ski, so I have no idea what to expect, but I know it will be cold,” he added.
Russia remains the only country in the world with a fleet of nuclear icebreakers. Rosatom has been responsible for operating and developing the infrastructure for the North Sea shipping route since 2018, a priority area for the company. In 2019, the Russian government approved a Rosatom-developed plan to enhance the North Sea Shipping Route infrastructure by 2035.
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Hungarian delegation visits ‘geothermal innovation world leader’ – Read here
The popularity of Hungary and the Philippines increased the most among the Russian holidaymakers, who spend much more money during their stay than before.
Russians like Hungary
Based on the analysis of OneTwoTrip, Russian news outlets wrote that the number of Russian holiday bookings abroad has increased by 26% since 2023. Mandinerwrote that Russian media outlets were surprised to find that Hungary and the Philippines are among the most popular destinations for the increasing number of Russian holidaymakers. Compared to 2023, the number of Russian travellers to these two countries quadrupled.
Based on statistics, Greek, Japanese, French, Portuguese and Vietnamese destinations are also popular. According to an expert asked by Kommersant, the reasons are the new flight routes like Hungarian Wizz Air’s direct flights from Kutaisi to Budapest, Rome, Athens, Milan, and Lárnaka.
Wizz Air connecting Russian tourists with Hungary? Photo: depositphotos.com
Based on the analyses, an average Russian trip lasts 12 days in Hungary. Moreover, they spend 35% more money here than in 2023. Meanwhile, the average inflation in Hungary was “only” 17.6% in 2023, so it seems welcoming Russian guests is profitable in Hungary.
Russian tourists disappeared due to EU sanctions
After the Russian invasion of Ukraine and the following EU sanctions, Russian tourists almost disappeared from Hungary. We wrote in May 2023 that it was difficult for Russian tourists to come to Hungary because the EU banned all Russian airlines and private planes from its airspace in 2022.
No more Aeroflot flights to Budapest. Photo: facebook.com/aeroflot
”The direct flight between Budapest and Moscow has stopped, you can only get here by taking very long detours. Recently, tourists mainly come to us from Buaku and Istanbul. But they can also come via Dubai, Belgrade and Astana,” explained tour guide Júlia Sarlai, one of the leaders of the Association of Hungarian Tour Guides.
Read also:
Wizz Air launches “All You Can Fly” pass: Unlimited flights with some fine print – read more HERE
Tamás Deutsch, the head of ruling’ Fidesz’s European parliamentary delegation, has called on the European Commission to “take immediate steps to counter Ukraine’s blackmail” of Hungary and Slovakia.
In an interview to public radio on Friday, Deutschcriticised the EC’s “inaction” concerning Ukrainian restrictions of the transit of Russian crude to Hungary and Slovakia, insisting that Ukraine was engaged in “blackmail” and in breach of its association agreement with the EU.
Noting that Fidesz’sEP group has sent a letter to the EC urging it to take action on the issue, Deutsch said Ukraine’s decision to restrict crude deliveries to two EU member states was “unprecedented”, as it seriously imperilled their energy security.
He said Ukraine had made it clear that its goal was to blackmail Slovakia and Hungary with the aim of getting them to change their pro-peace stance and join the “pro-war coalition backing the expansion of the Russia-Ukraine war with money, weapons and political support”.
Photo: FB/Tamás Deutsch
Deutsch said it was “obvious” that Ukraine would “ignore even the issue of energy security if it serves its political goals”. Also, the country was prepared to violate the association agreement with the EU “because the European Commission thinks it has to stand by Ukraine politically under all circumstances”.
Regarding Ukraine, “pro-war political interests supersede all else”, he said, insisting that the EC had failed to fulfil even its most basic obligations if it led to bolstering pro-peace efforts, and was even prepared to “look the other way” when it came to “political blackmail”.
Orbán and Zelensky in Kyiv in July. Photo: FB/Orbán
Brussels’ decisions, Deutsch said, were dictated by “an ideological bias that ignores the law”. He said the EC would take action once Ukraine started taking steps that directly went against the economic, political and security interests of western European countries, adding that such a scenario was “easy to imagine as Ukraine becomes emboldened”.
Read also:
EU countries consider reinstating border controls with Hungary over security concerns – read more HERE
Orbán family associate develops massive new residential project in Budapest – details in THISarticle
Foreign Minister Péter Szijjártó said on Wednesday that operations of the “Brussels lies factory” were unceasing despite “its continual failures”.
He said on Facebook that the “attacks” on Prime Minister Viktor Orbán’speace mission to Kyiv, Moscow, Beijing and Florida had “failed”.
Orbán’s visits were followed by talks between the defence ministers of the US and Russia, the foreign ministers of Switzerland and Russia, the foreign ministers of the US and China, while the prime ministers of Italy and Ukraine travelled to Beijing, and the Ukrainian president called former US President Donald Trump by phone, he added.
Szijjártóalso insisted that Brussels’ “mask slipped” as it had failed to conceal its enthusiasm for the Ukrainian measures that resulted in two EU member states, including Hungary, facing severe energy supply risks due to the oil taps being shut off.
He said that after these “two failures”, Brussels bureaucrats had come forward “with another lie” suggesting that Hungary was letting spies from Russia and Belarus into the EU, he said.
“We have already clearly explained to the representatives of Baltic states why this was a complete lie, but it appears that facts do not bother either them or Manfred Weber,” he said.
“The EPP president’s Hungarophobia is known far afield: he’s in a huff about Hungarians and is unable to accept that he could not become the European Commission president. And it’s easy to see that he is frustrated by the stronger-than-expected unity of real right-wing parties in the EP,” he added.
Szijjártó said Weber “must obviously know” that every EU member state carries out for itself all the procedures linked to third-country citizens’ residency, employment and visa affairs. “These procedures in Hungary are strict, comprehensive and give absolute priority to national security interests,” he said.
Read also:
EU countries consider reinstating border controls with Hungary over security concerns -read more HERE
Pál Kovács, the director of the Paks Nuclear Power Plant (Paks NPP), Hungary’s sole NPP, talked about the Hungarian government considering building Hungary’s third nuclear power plant with Russian technology. However, its location will probably not be Paks. He discussed that in an interview with Ria Novosti, the Russian state-owned domestic news agency.
Groundbreaking Russian technology for Hungary’s third nuclear power plant?
According to portfolio.hu, the government will select the third nuclear power plant’s technology only after they find its location. Theoretically, it would be a small modular reactor (SMR), and the Russians would build it since only Moscow has the technology to make it operable.
Csaba Lantos, Hungary’s energy minister, talked about a possible new NPP in Hungary, adding the SMR technology, so Kovács’s interview does not come out of the blue.
Kovács said that before the building process starts, Hungary must find a seismically resistant venue for the new block(s) and get all the necessary permissions. He highlighted that only one SMR block is operable now. The floating NPP in Pevek is in the Chukotka region of northeast Russia.
The Akademik Lomonosov, Russia’s floating NPP. Photo: Creative Commons
Will the new NPP be ready by 2035?
The power plant, named Akademik Lomonosov after the 18th-century Russian scientist Mikhail Lomonosov, is providing heat and power for the town with two KLT-40S reactors generating 35 MW each, power-technology.com wrote. Thus, it can supply a population of up to 100,000 people. Rosatom’s fuel division, TVEL delivers the fuel, but refuelling takes place only once every few years. There can be up to three and a half years between refuelling.
The SMR reactor started operation in December 2019 as a pilot project. It is said to be the first of a fleet of floating NPPs in Russia. Rosatom was constructing four other SMR power plants at the end of 2023 and plans to export them.
Interestingly, the MVM Group mentioned installing an SMR NPP by 2035 in a paper, but they were writing about 300 MW performance.
Paks NPP supplies almost 50% of Hungary’s electricity production. The two new blocks, equipped with Russian VVER-1200 III+ reactors, will double that share, Ria Novosti wrote. They also highlighted that Hungary regards nuclear energy as key to the country’s energy safety.
The Paks NPP. The third one will not be here. Photo: FB/Paks NPP
Read also:
Melt trap arrived at Paks Nuclear Power Plant – Read more HERE
Tamás Menczer, the Fidesz communications director, said in a video posted on social media on Monday that the only thing those striving for peace can count on is getting blackmailed.
The ruling party Fidesz official said non-EU Ukraine is threatening the energy security of two EU member states, Hungary and Slovakia, notwithstanding the EU association agreement by which Ukraine is bound. The official added that the European Commission, as the guardian of the treaties, should take action to protect member states and ensure countries such as Ukraine uphold the agreement.
Yet Brussels was doing very little about it, and it was even possible that the commission’s president, Ursula von der Leyen, had suggested the oil blockade, he said.
“We’ll use all means at our disposal to defend ourselves,” he said, noting regulatory and legal tools, a consultation procedure, or arbitration as possible avenues.
Menczer also referred to “technical possibilities”, adding that Hungarian oil and gas company MOL “is investigating these”.
He said Hungary had no intention of blackmailing Ukraine. “The contracts and agreements that we enter into are something we want to stick to,” he said. At the same time, he warned that much of the energy that Ukraine receives “passes through Hungary”.
As we wrote earlier, Hungary, Slovakia could restrict electricity supplies to Ukraine, details HERE.
European leaders are proposing border controls in response to Hungary’s new visa policy concerning Russian and Belarusian citizens. Manfred Weber, leader of the European People’s Party (EPP) group, criticised Hungary for creating “serious loopholes for espionage” by simplifying entry requirements for Russian and Belarusian citizens. Several German politicians share his concerns.
German politicians demand EU response
Manfred Weber criticised Hungary for creating “serious loopholes for espionage”. Source: Facebook/Manfred Weber
After Hungary eased visa requirements for Russian and Belarusian citizens in July, German politicians called for an EU-wide response, Index reports. Weber, a German MEP, stated that Hungary’s decision must have “consequences,” as it endangers European security. He highlighted to Bildthe existing damage caused by Putin’s spies and agents within the EU, emphasising the need to prevent further harm.
Potential reinstatement of border controls
European leaders are proposing border controls in response to Hungary’s new visa policy. Photo: FB/Magyar Rendőrség
Michael Stübgen, Brandenburg’s Interior Minister, suggested to Bild that
EU countries might reinstate border controls with Hungary.
He noted that EU treaties allow for such measures in exceptional circumstances. Countries like Austria, Croatia, Slovakia, and Romania could follow suit, mirroring current border controls with Poland and the Czech Republic.
Heightened espionage risks
Nancy Faeser, Germany’s Federal Interior Minister, did not comment directly, but a spokesperson noted the increased risk of Russian espionage and sabotage since the invasion of Ukraine. They emphasised the importance of EU partners bolstering efforts against these threats and avoiding the creation of potential loopholes.
Background of the controversy
Hungary granted the “Russian spy bank”, the IIB diplomatic immunity and tax exemptions in 2019. Photo: FB
The issue traces back to the International Investment Bank (IIB), dubbed the “spy bank,” which was dissolved last year following US sanctions. Despite its apparent role in supporting Russian intelligence, Hungary granted it diplomatic immunity and tax exemptions in 2019, allowing its staff and guests free entry into the country.
Challenges in screening applicants
Russian expert András Rácz highlighted the difficulty in screening the large number of National Card applications for security risks, noting that the challenge lies not in the intent to target Hungary specifically, but rather in the operational freedom of Russian agents across multiple EU countries.
The Hungarian government’s response
Foreign minister Szijjjártó called the EU’s concerns a “campaign of lies”. Photo: FB/Szijjártó
Hungarian Foreign Minister Péter Szijjártó dismissed the concerns as a “campaign of lies” by the Baltic states, insisting that the National Card program does not weaken security checks for Russian and Belarusian citizens. He emphasised that Hungary’s measures do not compromise the security of the Schengen area.
EU Commissioner demands explanation
Ylva Johansson, the EU Commissioner for Home Affairs, demanded an explanation from the Hungarian government regarding its visa system, emphasising the need for heightened vigilance against Russian threats. She warned that unilateral measures by Hungary could jeopardise the Schengen area and requested a response by 19 August, threatening appropriate consequences if EU law is breached.
Possible EU actions
While Johansson did not specify potential actions, she indicated that the European Commission could take legal steps against Hungary if it violates EU regulations, underscoring the ongoing tension within the Union over Hungary’s recent visa policy changes.
The decision in Kyiv to stop Lukoil shipments to Hungary and Slovakia was likely coordinated in Brussels as “they cannot stand it that Hungary has not backed down under pressure”, Péter Szijjártó, the foreign minister, said on Saturday.
Addressing a Mathias Corvinus Collegium (MCC) event in Esztergom, the minister said that the European Union had “weakened a lot”, but “it is surely not so weak as to tolerate a candidate country taking a decision without any consultation”, threatening the security of the energy supply of two EU member states.
Henoted Ukraine’s action affected a third of Hungarian crude oil imports and 40-45 percent of Slovak imports, “a significant energy supply risk”.
Further, Croatia was abusing its position by “hiking transit fees several times over” and limiting Hungary to short-term contracts, he added.
Read also:
Hungary slams Ukraine for Lukoil ban only because Russia asked them to? – Read more HERE
A Hungarian news outlet wrote that Hungary’s criticism concerning Ukraine’s “Russian Lukoil oil ban” began after FM Szijjártó met FM Lavrov in New York. Now, the Hungarian government communicates that Zelensky’s ban endangers Hungary’s and Slovakia’s oil supply, resulting in possible energy and fuel disruptions. Ukraine claims they let Russian oil through, but Russia halted part of the exports.
Does Russia not give enough oil to Hungary and Slovakia?
According to Válasz Online, the Hungarian government started slamming Ukraine for banning Russian Lukoil’s oil after FM Szijjártó met FM Lavrov in New York in mid-July. Zelenskysigned the relevant decree on 26 June, but Hungary remained silent for weeks even though PM Orbán met Zelensky in early July.
Lavrov and Szijjártó in New York this July. Source: Péter Szijjártó/Facebook… and in March. Photo: FM Szijjártó/FB
The Hungarian news outlet received an English language background paper about the situation from a source close to the Ukrainian government, acknowledging that the amount of oil transported through Ukraine decreased. But that is because the Russians decided to decrease it.
Litasco, Lukoil’s oil trade subsidiary, renounced the July oil amount, 260 thousand tonnes for Slovakia and 105 thousand tonnes for Hungary.
As a result, both the critical Hungarian government and Ukraine are right. There was a fall in the amount delivered. But Ukraine would have let through even Lukoil’s oil provided it was not labelled Lukoil or Litasco, portfolio.hu wrote.
It would be easy to overcome the difficulties with Lukoil
It would be easy to evade the sanction if Hungary and Slovakia (or the MOL processing the crude) could insert another oil trading company in the chain. There are many such firms. As a start, Válasz Online listed three: Tatneft-Europe AG, Normeston Trading SA, and Blackford Corporation Ltd.
Photo: depositphotos.com
However, for some reason, the governments in Budapest and Bratislava are interested in maintaining the political conflict instead of solving it. The two governments turned to the European Commission, but they are on the side of Ukraine, saying the ban does not endanger supply. FM Szijjártó said they could redirect Russian oil transports to the Adriatic pipeline, but Croatia was not reliable in terms of oil transit because Zagreb raisedthe oil transit fee to five times the average market price.
Is fuel shortage on the horizon?
Hungarian MOL did not communicate about the issue. Válasz Online learned from non-MOL sources that only FM Szijjártó can talk to the press about the issue. MOL CEO Hernádi said at the MCC Feszt that there would not be a fuel shortage even if no Russian oil came. But he did not say there was a chance for a complete Russian oil delivery stoppage. Hernádi also criticised the Hungarian government for the suspension of industrial investments, regulation uncertainties and excess profit taxes.
Photo: FB
Válasz Online believes that what we see is a power game between the countries before the 2025 expiration of the Ukrainian-Russian gas transit contract. Another explanation is that the Russians made clear to the EU that they have allies in the region.
At least two “simple” solutions
There are multiple simple solutions, as G7 noticed. One is that the Russians sell their oil at the Russian-Ukrainian border to MOL or another trading company. Another is that the oil comes through Croatia, but the latter would mean Ukraine loses lots of money. The Adriatic pipeline can satisfy the needs of Slovakia and Hungary, G7 wrote.
Hungarian foreign minister in talks with EC Vice-President on situation after oil ban
Péter Szijjártó, the minister of foreign affairs and trade, has talked to European Commission Vice-President Valdis Dombrovskis on Friday, to discuss the situation in the wake of Ukraine’s decision to “introduce an oil blocade without previous announcement”, MTI wrote.
Szijjártó said on Facebook that “it became clear during the talks that we see the nature and consequences of the Ukrainian decision differently.”
Hungary’s stance is clear, Szijjártó said: Hungary thinks that the EC should “not allow a membership candidate to play games with two member states and to put the safety of their energy supply at risk.”
The decision is endangering one third of Hungary’s oil imports fom the east. In Slovakia’s case, that proportions is almost 45 percent, Szijjártó said.
“We also see the step as a breach of the EU-Ukraine Association Agreement,” he said.
Szijjártó also briefed Dombrovskis on Hungary’s stance that Croatia was not a reliable transit country, as it steeply raised transit fees after the war started. Croatia had also failed to agree to Hungary securing capacities for the long term, and the actual capacity of its pipeline remained unclear, he said.
Therefore, Ukraine’s decision to curb transit may make Hungary and Slovakia “vulnerable to various business and political interests”, he said. “We expect the EC to stand up for the interests of Hungary and Slovakia,” he said.
“We have sent the Commission the detailed information requested, and agreed with the Vice-President to remain in constant contact to facilitate a speedy and satisfactory solution,” he said.
Read also:
Sky-high fuel prices and power outages may come in Hungary after Ukraine ban on Russian oil import – read the details HERE
Hungary and Slovakia have raised the idea of restricting or even suspending electricity supplies to Ukraine if it fails to resume the transit of oil to the former two countries, public broadcaster M1 reported on Friday, referring to talks between the two countries.
Experts asked by M1 have said that such a move was “theoretically” possible, through coordination between Hungary and Slovakia.
Olivér Hortay, senior researcher at Századvég, said Ukraine heavily relied on imported electricity, adding that the power supply received through Hungary “has on many occasions accounted for over 40-42 percent” of Ukraine’s domestic demand. “Cutting such a large amount off would seriously impact Ukraine’s supplies,” he added.
Read also:
Reuters informers: Ukraine may cease oil transit to Hungary, Slovakia in August – read more HERE
News broke in mid-July about an end-June Ukrainian decree banning Russian Lukoil from transporting crude oil using Ukrainian pipelines. Some experts said the step endangers supply in Hungary and Slovakia considerably. Ukraine says the opposite, and they cleared that in a harsh message to PM Robert Fico, claiming that the European Commission is on their side. Here’s the next episode of the Russian oil conflict.
No ‘mercy’ from Ukraine in Russian oil conflict
Ukraine’s prime minister, Denys Shmyhal, sharedthe harsh reaction of the Ukrainian government on an alleged Slovakian ‘threat’ on Telegram. He suggested that those countries that would like to keep up Russian transport to Europe would support the aggressor, and that is unacceptable. Before, Bratislava said they would halt diesel export to Ukraine provided Kyiv does not abolish their Lukoil sanction.
Ukraine announced the ban on Lukoil in mid-July and added they would not like to support the Russian machine by letting through crude for a company that is one of the biggest supporters of Putin’s invasion.
Orbán and Zelensky in Kyiv. Photo: FB/Orbán
The Hungarian and Slovakian governments were outraged, saying that the unilateral Ukrainian decision endangers both countries’ oil and energy supply. Some experts like Ilona Gizińska, a senior analyst of the Centre for Eastern Studies, told Politico that Hungarians should calculate with skyrocketing fuel and energy prices, but experts say she was not right.
The European Commission supports Ukraine
G7.hu wrote that the ban on Lukoil’s transport does not mean there would be fewer molecules in the Ukrainian pipeline, coming to Hungary and Slovakia. It only means that Lukoil is unable to label its crude as Lukoil. However, another company can substitute it in Ukraine, as it probably already happened, and business may continue as usual. For example, Hungarian gas and oil giant MOL having refineries in Bratislava and Százhalombatta and processing Russian oil, has not even said a word concerning the issue.
The MOL Tower in Budapest. They process Russian oil. Photo: FB/MOL Campus
Meanwhile, concerning the government’s excess profit taxes, MOL CEO Zsolt Hernádi slammed the Orbán cabinet in an opinion article. “We pay more for nothing. Isn’t that familiar somehow? Just like in the Communism. Back to the future, gentlemen”, he concluded his article published in the government-close Mandiner.
That is why Ukraine says their step does not endanger Slovakia and Hungary. And that is why they replied so harshly and added that the European Commission supported them. Hungary and Slovakia have jointly initiated a consultation procedure with the European Union against Ukraine, but the European Commission did not back the plea.
Financial Times wrote that Brussels needed more time to collect evidence and analyse the situation. That means they would not interfere in favour of Budapest and Bratislava. Furthermore, the European Commission saidthe ban did not cause problems in Hungary and Slovakia’s supply.
Ukraine’s stoppage of crude deliveries likely recommended by Brussels, says the Orbán cabinet
Tamás Menczer, the communications director of the ruling Fidesz-Christian Democrats, on Thursday said there was “a good chance” that the move to halt the transit of significant volumes of Russian crude oil to Hungary and Slovakia had been recommended to Ukraine by Brussels “or even [European Commission President] Ursula von der Leyen herself”. Menczer told public broadcaster Kossuth Rádió and news channel M1 that by stopping crude deliveries,
Ukraine was endangering Hungary’s and Slovakia’s energy security, which was in breach of its association agreement with the European Union.
He said the European Commission should take steps in the interest of protecting the member states impacted by the move and “safeguard” the implementation of the agreement, “yet nothing is happening”.
“We have to be increasingly firm in saying what we were saying at the beginning, which is that there’s a good chance that it was Brussels or [EC President] Ursula von der Leyen herself who had recommended to Ukraine that it should cut off oil deliveries,” Menczer said.
Blackmailing Ukraine?
He said Hungary would use every means possible to protect itself, “but it wouldn’t hurt if for once the commission acted in accordance with the regulations and in common sense, but it looks like we can’t count on this.”
Menczer said there were both legal and technical options for addressing the situation. Underlining that Hungary did not want to “blackmail Ukraine back”, he said it is a fact that a significant amount of the energy Ukraine uses is delivered to the country via Hungary.
Asked about the fine the European Court of Justice instructed Hungary to pay for refusing to implement several EU migration rules, Menczer said the timing of the fine was not coincidental, adding that Hungary’s commitment to peace could have been one of the reasons behind it.
Read also:
Hungary may receive Russian oil via Croatia, but there’s a huge problem – details in THISarticle
Budapest hosted the Russian International Investment Bank for years, but due to American and EU outrage, Hungary left the bank. Later, the Russians decided to leave Hungary because of the sanctions. However, they did not repay Hungary billions of forints, and they owe even a Budapest palace, which is still in the ownership of the bank.
Hungary should lobby against US, EU anti-Russia sanctions, IIB said
According to Népszava, the Russian International Investment Bank owes Hungary USD 74 million and an astonishing Budapest palace located in the prestigious area of the Chain Bridge. However, the Hungarian government seems to do nothing to reclaim the money and assets.
Based on the paper, Czechia took all legal steps to reclaim its money stuck in the Russian IIB after the bank left Eastern Europe. At least, that is what their finance ministry told the paper. The Hungarian government does not follow that example.
The bank called on all former European member states to pressthe Americans and Brussels to abolish the anti-Russia sanctions. As a result, they would be able to pay back their debts. For example, if the Orbán cabinet wants to retrieve its billions, they should convince the Biden administration to abolish the anti-Moscow sanctions. That is, of course, impossible even though the Orbán cabinet regularly slams the sanctions and keeps fingers crossed for Trump.
Trump and Orbán in Florida this July. Will Trump win back the Hungarian billions and the palace from the Russians? Photo: FB/Orbán
Minister mentions procedures
Gergely Gulyás, the head of the Prime Minister’s Office, talked about a bankruptcy procedure or a compulsory liquidation against the bank. But there is no trace of such legal processes in the official databanks. Népszava wrote that the minister said in a November press conference that there was a procedure against the bank, but that was not a bankruptcy procedure or a compulsory liquidation. He added that the Hungarian state would assert all its claims against the debtor.
This May, he mentioned a compulsory liquidation procedure, but he was not sure about that. He said the Chain Bridge Palace, the former HQ of the bank, was in the ownership of the financial institution. Based on estimates, it was at least HUF 9 billion (EUR 22.75 million). Mr Gulyás highlighted that they would like to reclaim the ownership of the building.
Photo: www.facebook.com/International Investment Bank
Photo: FB
Népszava argues there was no trace of any legal procedures against the bank.
IIB, the Trojan horse of the Russians?
The Russian International Investment Bank started operation before the Russian invasion of Ukraine and inauguratedits new seat in the heart of Europe in February 2021. After the invasion, European states left it one after the other. The last one to do so was Hungary in April 2022, with 25.26% of the shares. That came after the United States introduced sanctions against the Hungarian head of the Russian bank, former VP Imre Laszlóczki.
The American government, their representative in Budapest, Ambassador David Pressman, and some of their Western allies always considered the IIB as President Vladimir Putin’s Trojan horse in Europe. The bank left Hungary after the American and EU sanctions, saying their operation in the continent became impossible.
PM Viktor Orbán met with President Putin at the beginning of July in Moscow as part of his so-called peace mission. Neither mentioned the IIB and its debt to Hungary in the following and jointly held press conference.
Putin and Orbán in July in Moscow. Photo: FB/Orbán
Read also:
Hungary’s new visa system: Schengen access for Russian spies raises alarms
EU diplomats fuming: Hungary appeals to Brussels for Russian oil assistance – details HERE
Hungary and Slovakia called for action by the European Commission last week regarding Ukraine’s decision to restrict crude oil deliveries, the minister of foreign affairs and trade said on Facebook on Tuesday, asking: “Why has the EC not taken any steps for more than a week?”
Szijjártó calls on the European Commission
“Brussels is silent”, even though the measure is putting the energy security of two member states at risk, and is “a crystal clear violation of the EU-Ukraine Association Agreement,” Péter Szijjártó said.
Brussels is either too weak to push through the interests of two member states against a membership candidate, “or the whole idea was conceived in Brussels rather than Ukraine, and it is the European Commission, rather than the Ukrainian government, that wants to blackmail two pro-peace countries opposing weapons deliveries,” he said.
Szijjártó said: “The European Commission and personally Ursula von der Leyen must immediately show their true colours: was the oil delivery ban requested from Brussels? If it wasn’t, why has the EC not taken action for over a week?”
Hungary’s newest visa system opens the doors of the Schengen area to people from Russia, Belarus, and the Balkans. The Hungarian government justifies this move by citing labour needs for the Paks 2 project. However, the EU fears potential security risks. Manfred Weber, President of the European People’s Party, urges EU leaders to address this issue immediately.
New visa system threatens the integrity of the Schengen zone
444 writes that Hungary’s recent easing of visa restrictions for Russians, extending the National Card scheme to include workers from Russia, Belarus, and some Balkan countries, has raised significant concerns about security within the Schengen area. Manfred Weber, President of the European People’s Party, has expressed alarm over the potential for Russian spies to exploit this policy to gain access to the European Union. In a letter to Charles Michel, President of the European Council, Weber urged EU leaders to address this issue at their next summit, emphasising the need for immediate countermeasures to protect the Schengen zone.
Source: FB/Hungarian Police
National security risk
András Rácz, an expert in Russian affairs, has highlighted a significant national security risk posed by Hungary’s recent visa policy changes, which could create loopholes similar to those previously exploited by the Russian-owned International Investment Bank. This policy allows large numbers of Russians to enter Hungary and the Schengen area with minimal scrutiny.
The Hungarian government’s justification
Despite the Hungarian government’s justification related to labour needs for the Paks 2 project, Manfred Weber argues that this new immigration system could facilitate espionage activities. In response, Weber has urged EU leaders to implement robust measures to safeguard the Schengen area’s integrity and to prevent similar policy shifts by member states in the future.
Visual plan for Paks II. Source: Facebook/Paks II. Atomerőmű Zrt.
Due to a sanction imposed at the end of June, Ukraine halted Russian oil supplies to Hungary. This decision affected Slovakia as well, prompting both countries to seek help from the European Commission to ensure the uninterrupted flow of Russian oil. However, the European Commission turned down the request, which diplomats found outrageous.
The European Commission does not support Hungary
RTL reports that the European Commission has decided not to support Hungary and Slovakia in the ongoing Lukoil case, making a swift resolution of the dispute over Russian oil supplies, suspended by Ukraine, unlikely. During a recent meeting of EU trade representatives, 11 member states supported the Commission’s stance to refrain from taking immediate action on the Hungarian-Slovak initiative. Notably, no EU member state sided with Budapest and Bratislava in this matter.
Hungarian FM: Ukraine is blackmailing Hungary
Ukrainian sanctions imposed at the end of June have halted Russian Lukoil’s oil supplies to Hungary’s MOL via Ukraine, as Lukoil cannot lease the necessary pipeline network for transit. In response, Hungary‘s Foreign Minister Péter Szijjártó threatened to block a EUR 6.5 billion arms transfer compensation from the European Peace Facility unless Lukoil is allowed to resume its shipments. Ukrainian presidential adviser Mykhailo Podolyak dismissed claims of blackmail, arguing that Hungary and Slovakia demand concessions for Russia while failing to support peace in Ukraine. He urged them to appeal to Moscow to cease attacks on Ukrainian energy infrastructure.
The MOL Tower in Budapest. Photo: FB/MOL Campus
Meanwhile, European Commission spokesman Olof Gill indicated that the restriction on Russian oil supplies through Lukoil has no immediate impact on the EU’s oil supply, as Hungary and Slovakia have adequate reserves and continue receiving Russian oil via the Friendship pipeline.
EU diplomats fuming over Hungary’s request for Russian oil
As Politico reports, EU diplomats have criticised Hungary and Slovakia for seeking Brussels’ assistance with the Lukoil issue. Despite having over two years since Russia’s full-scale invasion of Ukraine to reduce their dependency on Russian energy, both countries have made little effort to divest from Russian oil.
Now, they are appealing to the EU to honour the 2014 trade agreement with Kyiv and asking the European Commission to intervene on their behalf. EU officials find the request frustrating, noting that other member states have successfully replaced Russian imports, while Hungary and Slovakia, who have been busy circumventing EU sanctions, continue to rely heavily on Russian oil.
Meanwhile, European Commission spokesman Olof Gill indicated that the restriction on Russian oil supplies through Lukoil has no immediate impact on the EU’s oil supply, as Hungary and Slovakia have adequate reserves and continue receiving oil via the Friendship pipeline.
A diplomatic row has flared up between Poland and Hungary following a speech by Hungarian Prime Minister Viktor Orbán at the Tusványos Summer University event in Baile Tusnad, Romania.
A diplomatic row has flared up between Poland and Hungary following a controversial speech of Orbán. Photo: Facebook/Viktor Orbán
In his address, Orbán criticized Poland’s geopolitical ambitions, their relationship with the United States, and their efforts to weaken Russia and outpace Germany economically. He labelled Polish policies as “hypocritical,” accusing Poland of conducting business with Russia while morally lecturing others.
Sharp Polish reaction to Orbán’s claims
Polish Deputy Foreign Minister Wladyslaw Teofil Bartoszewski responded sharply, stating to Polish Business Insider that Orbán’s comments were an attack not only on Poland but also on the U.S., the European Union, and NATO. He denied any Polish dealings with Russia and criticised Orbán for positioning himself on the fringe of international society, both within the EU and NATO. Bartoszewski questioned Hungary’s continued membership in NATO, suggesting that Orbán should consider forming a new alliance with Putin and like-minded nations.
In response, Hungarian Foreign Minister Péter Szijjártó defended Orbán, asserting that Poland was hurt by the truth. Szijjártó claimed that Hungary had long tolerated provocations and hypocrisy from the current Polish government in the interest of preserving the Hungarian-Polish brotherhood, but that patience had run out. He pointed out that Poland was also listed among the customers of a major Russian oil company, suggesting that Poland should not be hypocritical or accuse others while engaging in similar practices themselves.
A legal loophole could allow Russian oil to come to Hungary via Croatia. However, that amount will not be able to serve two refineries.
Russian oil may come to Hungary via Croatia
Photo: FB
Ukraine may eventually block all Russian oil supplies through the Friendship II pipeline. In preparation for this, three Russian oil companies have already started to divert their supplies to seaports, as Daily News Hungary reported.
According to Portfolio, a “legal loophole” can be exploited for these to reach Hungary and Slovakia via the Adriatic pipeline from Croatia. However, there is a problem: the pipeline has a much more limited capacity than the two countries need.
Tamás Pletser, an analyst at Erste Befektetési Plc., told RTL News that “if the supply through the Friendship pipeline stops, it means that in the short term, the MOL Group will be in a difficult situation, because the Adriatic pipeline can supply oil from the sea, but it cannot fully meet the demand of the company’s two refineries”.
According to the Hungarian News Agency (MTI), Slovakia said on Friday it had proposed a technical solution to Ukraine to restore oil supplies to refineries in Slovakia and Hungary, following warnings that a partial shutdown could lead to fuel shortages as early as early September.
As we reported, a Ukrainian sanction that came into force at the end of June has halted Russian Lukoil’s oil supplies to MOL via Ukraine, as the Russian company cannot lease the Ukrainian pipeline network for transit.
