Hungarian leader Viktor Orban's team has signed a 10-year gas supply deal with global energy and petrochemicals company Shell. What is important to understand is that this is a serious step for Hungary to diversify and reduce its dependence on Russian supplies.
Points of attention
- Hungary's negotiations with Western suppliers, besides Shell, demonstrate its proactive approach to secure alternative gas sources.
- Challenges remain for Hungary as it confronts the need to expand pipeline infrastructure to accommodate diversified gas supplies.
Hungary is starting to distance itself from Russia
According to the latest data, the Hungarian authorities have signed a contract for 2 billion cubic meters of gas, the supply of which will begin in 2026.
Hungarian Foreign Minister Peter Szijjártó has already made a statement on this matter.
The diplomat officially confirmed that gas will arrive in his country through Czech and German gas pipelines.
Despite the fact that official Brussels plans to stop importing Russian fossil fuels by the end of 2027, Budapest has repeatedly expressed objections to these plans.
Orban's team demanded that the EU compensate member states for diversification efforts, but is currently making decisions to find alternatives.
"We are negotiating several more contracts with other Western suppliers, but we are not ready to announce them yet," Szijjártó said.
Against this backdrop, Hungary continues to complain that the current EU plan to phase out Russian energy imports continues to pose a serious risk to its energy security.
Orbán's team argues that the country does not have enough pipeline infrastructure from other markets to provide the necessary volumes.
