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regular-article-logo Sunday, 05 May 2024

Hungary says ready to pay for Russian gas in roubles

Foreign minister Peter Szijjarto earlier said that European Union authorities had ‘no role’ to play in its supply deal with the transcontinental country

Reuters Budapest Published 07.04.22, 02:38 AM
Viktor Orban

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Hungary said on Wednesday it was prepared to pay roubles for Russian gas, breaking ranks with the EU which has sought a united front in opposing Moscow’s demand for payment in the currency.

Hungary will pay for shipments in roubles if Russia asks it to, Prime Minister Viktor Orban told a news conference on Wednesday.

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Russian President Vladimir Putin has warned Europe it risks having gas supplies cut unless it pays in roubles as he seeks retaliation over western sanctions for Moscow’s invasion of Ukraine.

With weeks go to before bills are due, the European Commission has said that those with contracts requiring payment in euros or dollars should stick to that.

Hungary’s foreign minister Peter Szijjarto earlier said that EU authorities had “no role” to play in its gas supply deal with Russia, which was based on a bilateral contract between units of Hungarian state-owned MVM and of Gazprom.

Hungary has been one of a few EU member states that have rejected energy sanctions against Moscow in response to the invasion, which Russia terms a “special military operation”.

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.

While Putin’s demand has raised hackles in many of Europe’s capitals, its governments are discussing the issue with energy companies.

On Monday, Slovakia said it will act in unison with the EU, while Poland’s dominant gas company PGNiG has maintained that its original contract with Gazprom which expires at the end of this year is binding on both parties. In Austria, energy firm OMV said on Friday it had had initial contact with Gazprom about paying for natural gas in roubles.

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