On one side, the whole European Union is in a catch-22 situation as supplies from Russia have hit a snag. As winter approaches, the EU is quite likely to succumb to escalating demonstrations and civil upheaval. But, that might not be the case with Hungary.
Hungary has decided to strike oil deals in a bid to cool down the rising tensions. And honestly, these oil deals could prove to be a boon for other European Nations too
From the very first day of the war, Hungarian Prime Minister Viktor Orban kept a different tone from European Commission and kept his ties with Russia intact. Now, very soon it may become an energy hub for Europe….
Brussels did a political blunder the day it decided to wean itself off Russian energy. However, Hungary has been an exception for the last five months. It has been a member of both the EU and NATO. Yet, Hungarian PM Viktor Orbán didn’t condemn Russian Aggression. Even after being condemned, the guy did not cut commercial relations with Russia.
Hungary even kept creating roadblocks for the EU in implementing sanctions. However, where it fell short was its inability to halt the nation’s rising cost of living. Hungary is now bearing the brunt of the actions of the EU. A few days ago, there were protests in Budapest against Orban’s latest decision to tackle inflation.
Hungary looks at Iran and Russia
In a bid to secure energy supplies for Hungary, Hungarian Foreign Minister Peter Szijjarto landed in Moscow to purchase more Russian gas.
Hungarian ruling party Fidesz in an FB post announced: “In order to ensure the security of Hungary’s energy supply, the government has decided to purchase an additional 700 million cubic meters of natural gas in addition to the quantities stipulated in the long-term contracts,”
Peter Szijjarto met his counterpart Sergei Lavrov in a bid to churn out additional supplies. Szijjarto has also held talks with Russian Deputy Prime Minister Alexander Novak and Denis Manturov to start some exclusive new gas deals.
Under a 15-year deal with Russian energy giant Gazprom signed last year, Hungary was poised to receive 3.5 billion cubic meters (bcm) of gas per year via Bulgaria and Serbia. But, thanks to the sanctions the supplies are now totally doomed.
Hungary now intends to have a long-term contract with Russia. It wants to switch all of its gas shipments to the Turkstream pipeline, which transports gas to Hungary via Serbia.
Not only this, but Hungary has also intentions to have formal talks of oil deals with Iran. yesterday, Szijjarto also had a talk with Iranian counterpart Hossein Amir-Abdollahian in which both of the leaders were heard talking about energy security. Hungary is now committed to expanding cooperation with the Islamic Republic of Iran.
Moreover, Iran also wants to get indulged in an ever-expanding level of economic and trade cooperation. This means very soon, we are going to hear about the resumption of Iranian oil exports to Hungary. With this, a new chapter of Iran and EU relations will begin.
Hungary’s deal is Boon for the EU
Viktor Orban has been known for having cordial relations with Putin. This relation has always been a point of contention between the EU and Hungary. Now, it appears that Hungary may also alter its stance toward Iran.
Hungary would be having secure energy supplies from both nations. Sadly, the EU would be simply crying over the spilled milk. But, Hungary could prove to be a savior for these nations from the rising crisis. Let us explain how?
If energy deals with Iran and Russia are successfully signed, Hungary would be definitely sitting on an energy surplus. As of now, Hungary is in no mood to share its energy with others, but it is possible that Hungary would share its energy supplies with some favoring nations to bail them out in midst of harsh winters once the supplies are surplus.
Furthermore, Hungary could play a mediator role between Iran and the EU which the commission has been looking to do for a long haul. So, it seems that energy security from Russia and Iran is pushing Hungary into a really favorable position.
An energy surplus along with Hungary’s role as mediator means a strong position for Orban on the geopolitical scale too. Its progress has been so far so good. Now, it is set to become the energy capital of Europe.