Why did Hungary give in to the EU on sanctions for energy security guarantees

Alexey Belogoryev, Research and Development Director of the Institute for Energy and Finance, commented to the Vedomosti newspaper on the prospects for ensuring Hungary's energy security in the face of threats to Russian oil and gas supplies.

According to Alexey Belogoryev, Hungary's strategy is based on the transience of the conflict between Russia and the EU and the possibility of its weakening, which will save the Hungarian energy company MOL from searching for alternatives to Russian supplies.

Given the attacks on the Turkish Stream, Budapest is worried about its dependence: it needs Ukrainian transit in reserve, the expert notes. However, so far Hungary's gas supply has been provided by an excess in UGS (3.5 billion cubic meters in January, or 57% of capacity), supplies from Romania (Azerbaijani gas, some goes to Slovakia) and Croatia (LNG), as well as its production (1.6 billion cubic meters, 19% of consumption), the expert notes.

For oil, up to 30% of Hungary's needs go through Croatia: this would seem to be the most obvious alternative route in terms of pipe capacity, the expert says.

"But supplies are not competitive against Druzhba: the issue of oil is not volume, but price," he adds.