Russia’s war in Ukraine and European Union sanctions have led to an “energy crisis” on the continent, according to the prime minister’s chief of staff.
The Hungarian government has declared an “energy emergency” in response to supply disruptions and soaring energy prices in Europe, an official said.
Russia’s war in Ukraine and subsequent European Union sanctions have led to an “energy crisis” on the continent, Gergely Gulyás, Prime Minister Viktor Orbán’s chief of staff, said on Wednesday.
It is “unlikely that there will be enough gas in Europe for the autumn and winter heating season”, and Hungary will increase its domestic energy production capacities to ensure adequate supply, Gulyás said. at a press conference in the capital, Budapest.
“The protracted war and sanctions from Brussels have caused energy prices to rise dramatically across Europe, and in fact much of Europe is already in an energy crisis,” Gulyás said.
Hungary will increase its annual natural gas production from 1.5 billion cubic meters (52.9 billion cu ft) to two billion cubic meters (70.6 billion cu ft), increase lignite (brown coal) mining ) and will put a currently non-working lignite. recommissioned the power plant, Gulyás said.
Energy exports will be banned and Hungary’s only nuclear power plant will also increase production by extending its operating times, he added. The measures will come into force in August.
Gulyas said that, for the time being, Hungary’s gas supply was uninterrupted and that any future restrictions, if necessary, would only affect households as a last resort.
“Waste can no longer be allowed anywhere,” he said.
“Any alternative should be considered that provides incentives for the most efficient use of energy in the economy.”
“Energy Emergency”
The announcements came after Orbán called a cabinet meeting earlier on Wednesday to discuss what he called an “energy emergency” in Europe.
Hungary is heavily dependent on fossil fuels from Russia and last year signed a 15-year deal with Russian energy company Gazprom to purchase natural gas.
Hungary gets around 65% of its oil and 85% of its gas from Russia.
After Moscow launched its war on Ukraine, the EU, of which Hungary is a member, sought to target Russian oil exports with sanctions.
Orbán fought vigorously against such EU measures, arguing that blocking Russian oil would cripple his country’s economy.
The Hungarian Prime Minister managed to negotiate a concession which allowed a temporary exemption of the imports of oil conveyed by the Russian oil pipeline Druzhba towards certain landlocked countries like Hungary.
Earlier on Wednesday, Hungarian Foreign Minister Péter Szijjártó told a meeting of regional foreign ministers that Hungary would seek to purchase an additional 700 million cubic meters (24.7 trillion cubic feet) of gas before the European fall, but did not specify from where.
Economists at Wood & Company said Hungary was the Central European country most at risk from a potential energy shortage, which could put additional pressure on the forint, Central Europe’s worst-performing currency.
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