Hungarian Envoy Seeks to Secure Gas in Moscow as Europe Pivots

(Bloomberg) -- Hungary is seeking to secure more Russian gas in a break with other European Union members that are trying to get the bloc to pivot away from fuel supplies that helping funding the Kremlin’s war on Ukraine.

The government will create an additional 800 million cubic meter gas reserve, to be delivered overwhelmingly by Russia, according to a decree issued Friday. Foreign Minister Peter Szijjarto visited Moscow on Thursday to request an additional 700 million cubic meters of the fuel on top of a previously agreed amount in a long-term contract.

The engagement follows Hungary’s stated reluctance toward EU efforts to sanction Russian energy supplies and warnings that penalizing Moscow is exacerbating the EU’s energy crisis.

“I came here to ask for gas deliveries in addition to the already agreed amount, and to tell you how important it is to have peace and the war to end,” Szijjarto told his counterpart Sergei Lavrov at a news conference Thursday.

Lavrov, who is under sanction by the EU and the US for his role in advancing Russia’s invasion of Ukraine, said Russia would “consider” the request.

Hungary’s efforts to secure gas from Russia coincide with a proposal put forth by the EU asking members to reduce gas consumption by 15% over the next eight months in a plan that would affect all households, power producers and industry.

That proposal reflects mounting concern that Russia will halt gas exports to the region in retaliation for sanctions. A cutoff would threaten EU efforts to replenish stockpiles ahead of winter, potentially jeopardizing security of supply to key sectors and crippling the region’s economy well into next year. But Hungary, Italy, Poland and other countries have expressed reservations to the plan.

The decree issued Friday also tasked a government arm to take an 1.85 billion euro ($1.88 billion) bank loan to be able to finance the purchases.

Hungary, which has repeatedly clashed with the EU’s efforts has long-term contracts with Gazprom PJSC to receive 4.5 billion cubic meters of gas, mostly via the southern pipeline through Turkey. 

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