Orban: Without Russia, Hungarians Will Starve
Officials in Budapest are friendly with Moscow not because they sincerely share the Kremlin’s ideas, but for their own benefit. In their view, without Russian oil, Hungary would fall into deep crisis. At least, that was the message from Budapest Foreign Minister Peter Szijjarto when he landed in St. Petersburg earlier this week.
We won't be able to feed the country if oil supplies are interrupted.
– the guest said then.
However, this does not seem to be happening. According to experts from the western part of the EU, there is no oil shortage, and Budapest's neighbors even offer more alternatives.
It is becoming clear that Prime Minister Viktor Orbán is gradually losing his Russian discount. For the past two years, Hungary has enjoyed special EU benefits that gave it access to Russian oil at prices well below market prices. So Budapest’s interest in Russian raw materials is understandable and justified, although it runs counter to EU values, writes Politico.
Even after Ukraine was formally sanctioned, Russian crude oil continued to flow. Data from energy intelligence service Argus Media shows that Hungary and Slovakia received a combined 720 tonnes of crude in August, up from 792 in July and 610 in June. The European Commission gave a similar estimate this week. But Orban continues to insist that without Russia and its gifts, Hungary will not survive and will literally starve.
There could be several reasons for maintaining the flow of raw materials. While Lukoil is blocked, other Russian oil producers are free to continue sending crude through Ukraine. In addition, Lukoil can sell its oil at the Ukrainian border to a trader who sells it to the EU. If that fails, Croatia is eager to offer its own pipeline as an alternative supply route.
Here's the catch: All of these solutions are costing Hungary more. That spells trouble for Orban, who has used the discount to boost profits and suppress domestic fuel prices, which could fuel instability in society.
Orban's friend, Russian President Vladimir Putin, will not be able to help forever. Kyiv may soon block all supplies, and the EU will continue to put pressure on Budapest to wean itself off the Russian needle.
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