Hungary working on ‘solution’ to pay for Russian gas in May -foreign minister
2022.04.06 13:46
Gas pipelines are seen in a gas distribution center near the Serbian border in Kiskundorozsma, Hungary, September 28, 2021. REUTERS/Bernadett Szabo
BUDAPEST (Reuters) -Hungary’s gas supply is based on a bilateral contract with a payment obligation to Gazprom (MCX:GAZP) due in May, and the solution for this payment is currently being worked out, Hungarian Foreign Minister Peter Szijjarto said on Wednesday.
Replying to a question on whether Hungary could pay in roubles for the Russian gas imports, Szijjarto told reporters:
“Our first payment obligation is due at the end of May. The technical solution is there to allow us to be able to pay for the gas we have used, and the technical details of this solution are currently being worked out.”
He did not provide further detail.
Russia has asked its overseas clients from so-called “unfriendly” countries to pay in roubles for natural gas, a plan which has met strong criticism from Europe.
Hungary, which is heavily reliant on Russian gas and oil imports, signed a new long-term gas supply agreement with Russia last year. Hungary has been one of a few EU member states that have rejected energy sanctions against Moscow after Russia’s invasion of neighbouring Ukraine.
Prime Minister Viktor Orban, whose government has pursued close business relations with Moscow for over a decade, swept to power for a fourth consecutive term in elections on Sunday, partly on a pledge to preserve security of gas supply for Hungarian households.
Orban rejected sanctions on Russian oil and gas saying that would wreck the economy.
Szijjarto said on Wednesday that Hungary’s gas supply was based on a bilateral contract between a unit of Hungarian state-owned MVM and a unit of Gazprom and the EU “had no role” in this contract.
“As for the intention of the European Commission that there should be some kind of common response from countries importing Russian gas, we do not think that is necessary,” Szijjarto said, adding that countries had individually signed bilateral contracts.
“And how everyone modifies their contracts, its none of our business….just as no one has a say in how we modify our own contract.”
