Orban Demands Ukraine Gas Deal for Russia Sanctions Renewal

(Bloomberg) -- Hungarian Prime Minister Viktor Orban called on the European Union to pressure Ukraine to re-establish the transit of Russian gas to Europe and linked the issue to extending sanctions against Moscow.

The EU is considering his demand, Orban told state radio on Friday, adding that the matter had prompted him to “pull the emergency brake” on renewing sanctions on Russia. The bloc needs the unanimous support of its 27 member states to prolong the penalties, which will otherwise lapse after Jan. 31.

Hungary has pilloried Ukraine for its decision not to renew Russian gas transit to Europe this year after a multi-year contract expired at the end of last month. Ukrainian President Volodymyr Zelenskiy said he refused to allow supplies that would send fees to Russian coffers, while Orban blamed Ukraine for rising energy prices in Hungary. 

“If Ukraine wants our help, for example by sanctioning Russia, then please re-open the gas route,” Orban said, adding that it would take “one phone call from Brussels” to make this happen. 

Orban irked EU counterparts at a summit last month by saying he wanted to wait until US President Donald Trump’s inauguration before deciding whether to extend sanctions. The last-minute move raised the prospect that what is a normally a routine, biannual decision might be in jeopardy.

He also asked for guarantees from Ukraine that the main alternative gas supply route to Hungary, TurkStream, be spared any potential attacks and that oil supply routes to Hungary also be protected.

The Hungarian premier has repeatedly called for the end of Russian sanctions since Moscow’s invasion of Ukraine almost three years ago. One of Donald Trump’s closest Trump allies, Orban has backed the US president’s ambition to end the war swiftly, asserting that his administration would cut off aid to Ukraine after taking office.

The government in Budapest was caught off guard by Trump’s statement on Wednesday in which he threatened further sanctions against Russia if President Vladimir Putin failed to make a “deal” to end Russia’s war on Ukraine.

Hungary plans to consult with the Trump administration before deciding its position on Russia sanctions, Foreign Minister Peter Szijjarto told reporters on Thursday. He said the issue will be debated at a meeting of EU foreign ministers in Brussels on Monday.

That means it would be difficult for EU ambassadors meeting in Brussels on Friday to resolve the matter. Until Orban made his latest demands, the renewal of sanctions every six months had been a routine affair. 

(Updates with Orban comment, timeline from fourth paragraph.)

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