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Economy & Policy

Hungary does not support the introduction of the gas cap

With the price cap, Russia may decide not to supply gas to Europe at all.

According to Tamás Menczer, minister of state for the development of bilateral relations at the Ministry of Foreign Affairs and Trade, the idea is absurd because gas could be put under a price cap only if Europe had an abundance of gas and the continent was in a “dictating position.”

But the war and the misguided sanctions policy in Brussels are making the situation more serious every day, and there is an energy shortage in Europe. Hungary is an exception, he said. 

According to the secretary of state, a price cap would have two consequences: Russia would say that it would not supply any gas to Europe, which would in turn mean even less gas that is even more expensive.

The gas procurement has two conditions: It needs a source and a pipeline, Menczer said.

In Hungary’s case, there is a source, as the Russian long-term agreement covers half of Hungary’s annual consumption, and there is infrastructure, the Southern Corridor, where gas arrives uninterrupted, unlike the Northern Stream, Menczer pointed out. 

He stressed that the sanctions have had a price-lifting effect, with Russia’s Gazprom posting record profits of $41.5 billion in the first half of the year. 

It will be a difficult period ahead, but there will be gas in Hungary for sure, the reservoirs are 38 percent full in relation to consumption; we have enough gas reserves for 81 winter days and supplies are ongoing, he stressed.

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