Hungary secures new sanctions loopholes to aid Russian ties
Hungary has once again negotiated concessions from the EU sanctions imposed on Russia. Due to the pressures from Viktor Orban's government, MOL has gained greater freedom in trading fuels from Russian oil, and Budapest can continue its cooperation with Moscow in servicing the metro and building the Paks II nuclear power plant, reports wyborcza.biz.
The European Union announced the 16th package of sanctions against Russia, yet Hungary has once again secured a series of exceptions from Brussels to protect its economic interests. Budapest has effectively blocked further tightening of restrictions against Moscow for years, negotiating benefits for its companies and energy projects in exchange, notes wyborcza.biz.
The most significant concessions concern the MOL corporation, which can continue importing Russian oil through the "Druzhba" pipeline. The EU agreed to allow the trade of fuels produced from this resource in Hungary and Slovakia, expanding previous restrictions. The Hungarian government also secured the ability to service and legalize measurement equipment for oil transmission, enabling continued cooperation between MOL and Russian suppliers.
The biggest benefit for Russia
Another concession is allowing the import of goods and services from Russia for the operation of Budapest's metro. This involves rolling stock imported in 2018 from the Russian company Metrowagonmash, which is owned by Transmashholding – a corporation that also produces weapons for the Russian army. This means that Hungary indirectly supports Russia's defence industry.
The biggest benefit for Moscow remains the Paks II nuclear power plant project, carried out by Rosatom. Hungary had already ensured that EU sanctions would not include this investment. This means billions in revenues for the Russian energy sector, despite the ongoing war in Ukraine.
Budapest has once again proven that it can effectively use its veto power in the EU, negotiating concessions that weaken the effectiveness of EU sanctions and help Russia maintain key sources of revenue.
