Hungary may block new EU sanctions against russian LNG

The EU's expected strike against russia's lucrative LNG (liquefied natural gas) sector is already running into a familiar opponent of sanctions - Hungary.

Budapest expressed significant reservations about the new proposal during the first discussions between EU ambassadors - refusing to directly oppose the measure, but making its wariness evident. A senior Hungarian official said that his country would block any sanctions that raise energy prices in Europe.

“We will analyze the package, but we will not support anything that could have a negative impact on the EU gas market,” the Hungarian official said during a meeting of diplomats.

The sanctions are supposed to prohibit EU countries from re-exporting russian liquefied natural gas (LNG), potentially depriving Moscow of significant profits. However, they will not stop the purchase of russian gas in the EU and will not directly affect Hungary's business interests. Nevertheless, the country is highly dependent on russian supplies and has long opposed further energy sanctions against Moscow. As you know, the imposition of sanctions requires the unanimous support of all 27 EU countries.

Several other countries, including France, Germany, Italy, and Spain, also asked for more technical information about the measures during the initial negotiations. But Hungary has been the most hesitant about such restrictions. 

France, Spain, and Belgium are the largest import centers for russian LNG, much of which is then re-exported to countries such as Germany and Italy. 

However, both Berlin and Rome have recently expressed preliminary support for the new sanctions. 

Unlike other EU countries, Hungary did not give up on russian gas after russia's full-scale invasion of Ukraine. It even signed new agreements with Gazprom to increase supplies during peak demand. Ukrainian officials have repeatedly called on Budapest to end its energy dependence on the Kremlin.

“Hungary considers all sanctions affecting the energy sector to be harmful, as they significantly limit European competitiveness and lead to higher prices and risks to supplies,” said Mate Pacholai, a spokesman for the Ministry of Foreign Affairs.

During his visit to Moscow last year, Hungarian Foreign Minister Peter Szijjarto insisted that his country's energy security “requires uninterrupted transportation of gas, oil and nuclear fuel.”

“To meet these three conditions, Hungarian-russian energy cooperation must be continuous. This has nothing to do with political preferences,” he said at the time.

Source: Politico