Hungarian Conservative

MOL has signed agreements with oil shippers and pipeline operators to ensure the continuous transport of oil through the Druzhba pipeline from Russia.

‘If Hungary does not receive more oil from Russia, we will simply not survive; we will not be able to supply the country,’ Hungarian Minister of Foreign Affairs and Trade Péter Szijjártó emphasized in an interview with the Russian TV channel RBK. The minister stressed that currently, there is no alternative route capable of supplying Hungary with sufficient oil other than the pipeline that runs through Ukraine.

According to Ukrainian presidential advisor Mykhailo Podolyak, Kyiv plans to shut down the Druzhba oil pipeline starting from 1 January 2025. This pipeline is a key route through which Russian oil reaches Europe, including Hungary, Slovakia, and the Czech Republic. Hungarian oil and gas company MOL stated that it has not been informed of this decision and that transport is currently running smoothly. Hungarian Minister of Foreign Affairs and Trade Péter Szijjártó has assured that Hungary’s energy supply remains secure.

Ukraine’s decision not to renew its contract with Gazprom has raised concerns in many about how Russian gas will reach Europe in the future. Kremlin spokesman Dmitry Peskov indicated that Russia could still meet European customers’ needs through the Turkish Stream pipeline, but at a higher cost than before. This latest move by Ukraine poses yet another threat to Hungary’s energy security.

Recent statements by Hungarian government officials suggest that the threat to Hungary’s energy supply is being addressed. In July, Kyiv decided to cut off supplies from Russia’s Lukoil to Hungary. Since then, intensive negotiations have commenced, and Hungarian oil giant MOL now appears to be in a position to guarantee the security of Hungary’s oil supply.

The European Commission will not convene a consultative forum on the dispute between Ukraine and EU members states Hungary and Slovakia over the transit of Russian oil through Ukraine. Brussels’ reasoning is that there is no immediate threat to the energy security of these two countries due to Kyiv’s decision to halt the supplies. These developments indicate that the European Commission has blatantly sided with a non-EU member against two member states, jeopardizing their energy security.

Hungary declared its support for Georgia’s membership efforts comes shortly after the EU’s decision to halt the accession process following the adoption of the foreign agent law by the Tbilisi parliament.

Minister of Prime Minister’s Office Gergely Gulyás stated on Friday that Hungary does not want to blackmail Ukraine over the halted transit of Russian Lukoil oil shipments via Ukraine to Hungary and Slovakia. However, Gulyás pointed out that if no solution is found in the near future, ‘other steps should be considered’.

Hungary and Slovakia are taking joint action against Ukraine over its halting of Russian oil shipments to the two EU member states. This move seriously threatens the long-term energy security of both countries, and is considered a violation of the EU–Ukraine Association Agreement by Budapest and Bratislava.

The Hungarian MVM Group is set to buy a stake in Shah Deniz, one of the world’s largest natural gas fields, in Azerbaijan. This move will significantly strengthen Hungary’s energy supply and represents another major step towards independence from Russian energy sources.

‘Energy security, in terms the consumer understands, needs to address three things: reliability, affordability, and acceptability, in that order. These terms apply to a nation state’s understanding of energy security, both because a citizenry not achieving these things will rapidly object and because a nation state is quickly made vulnerable by the instability that comes when energy is no longer reliable, affordable, or acceptable.’

The value of the three-part investment is HUF 26 billion, with the government providing approximately HUF 900 million in support, Minister of Foreign Affairs and Trade Péter Szijjártó announced on 23 May. The minister highlighted at the inauguration ceremony of Siemens Energy Ltd’s new plant that the German conglomerate will manufacture gas turbine burners in its new multifunctional facility and establish a dual training centre there, equipping Hungarian professionals with the knowledge needed for using the latest technologies.

In an interview with public media Minister of Energy Csaba Lantos informed that the recently concluded China-Hungary bilateral agreements cover, among others, nuclear research and development, training cooperation, expanding the electric vehicle charging network, and examining the possibility of creating a critically important connection between the Hungarian and Serbian oil pipeline systems.

In the second half of 2024 a regional power exchange known as the BlueSky Project is poised for launch, involving Hungary, Slovenia, and Serbia. Hungarian Minister of Foreign Affairs and Trade Péter Szijjártó stated in Budapest on Tuesday that the initiative will notably enhance regional security of energy supply.

Hungary stands as the sole EU member state purportedly failing to adequately diminish its energy reliance on Russia, a paid advertisement of the US Embassy in Budapest suggests. However, the truth is that numerous EU nations continue to rely on Russian imports, and the Hungarian government is actively striving to diversify its energy sources.

Crucial milestones regarding the expansion of the nuclear plant in Paks are the construction of the containment structure and the reactor vessel, of which the former has been completed, while the manufacturing of the latter is set to commence shortly. It is expected to reach another milestone, the ‘first concrete’, by the end of this year.

The first V4 summit of the year is scheduled for 27 February, with a focus on illegal migration, energy security, and the EU’s strategic objectives. After the estrangement caused by the war in Ukraine, cooperation seems to be back on track, but its future will largely depend on the willingness and ability of Hungarian Prime Minister Viktor Orbán and Polish Prime Minister Donald Tusk to collaborate.

Péter Szijjártó welcomed the continuous development of bilateral economic relations and the breaking of export records. He also praised Qatar’s role in the release of some hostages abducted by Hamas, including three Hungarian citizens, and revealed that another Hungarian citizen might be held by terrorist organization and requested assistance from Qatar in facilitating their prompt return.

The conservative position in the United States is that American exports should be ramped up to secure European energy stability and American influence, pushing back Russia’s own power across the continent while questioning the validity of the environmentalists’ alarmism in the process. While U.S. policy is already moving in such a direction through its increased LNG exports, a possible conservative administration in 2024 seems to have its agenda set to push the effort into overdrive.

During a joint press conference with Alexey Likhachev, the head of the Russian nuclear energy company Rosatom, Péter Szijjártó welcomed the start of the construction of new reactors in Paks. He pointed out that the expansion is currently the largest nuclear project on the continent with a construction permit.

According to the ministry’s statement, Foreign Minister Szijjártó minister reported on the progress of the Paks project during a hearing of the Sustainable Development Committee of the National Assembly, welcoming the fact that the visible phase of the project is now underway.

The energy cooperation between the two countries will gain a new dimension as gas supplies will soon also originate directly from Turkey, following the finalisation of an agreement between MVM and Botas for the purchase of 275 million cubic metres of gas next year.

The ministry emphasised that combined cycle gas turbine power plants can be built relatively quickly, have exceptionally high efficiency, low specific carbon dioxide emissions, and their capacity can be adjusted to consumption levels.

A brief summary of the most important remarks made by government officials on the second day of the 32nd Tusványos Summer Festival in Transylvania.

During the inauguration of a new solar power plant established by the MVM Group, Alexandra Szentkirályi stated that due to the war in Ukraine and the imposed sanctions, a very challenging energy situation has emerged. Therefore, the government’s most important task is to strengthen Hungary’s energy independence.

James Woudhuysen, the author of the study and a guest professor at London South Bank University, stated that the EU energy policy and decision-making are more ‘performative’ than effective, and the related decisions have not improved but rather worsened the energy situation in the EU.

‘Hungary has submitted the draft contract modifications to the European Commission, and we received the green light from them yesterday,’ Minister of Foreign Affairs and Trade Péter Szijjártó announced.

The minister reported at a press conference following the meeting of the Hungarian-Serbian Economic Joint Committee that the contract for the planned oil pipeline, to be established in cooperation between Mol and Transnafta, will be signed at the 20 June government summit.

The minister held talks with ministers and was part of an energy conference panel discussion, where he emphasised the importance of renewable energy, electric vehicles and nuclear power.

Europe and Hungary were fortunate to have a mild winter, but ‘a country’s leadership cannot make an unequivocal bet that this will always be repeated,’ Energy Minister Lantos warned. Therefore, the government has decided to raise the level of the security gas reserve. Previously, the country stored 10 per cent of its annual consumption as a security reserve, which was now raised to nearly 2 billion cubic metres, or 20 per cent of consumption, while consumption itself decreased.