Briefing notes

Hungary will also benefit from EBRD support

Hungary will use funds from the European Bank for Reconstruction and Development (EBRD) to mitigate the consequences of the Russian-Ukrainian war in neighboring countries.

According to a statement by Finance Minister Mihály Varga, in the current situation, it is crucial that the funding support also covers energy security. 

Hungary is highly exposed to Russian energy imports because of its historical characteristics and the fact that it is a landlocked country, the finance minister said. He added that despite Hungarian efforts, alternative European pipeline infrastructure has not been built and pipelines from the West are carrying the same Russian oil and gas as those coming from the East.

Varga said that domestic energy supplies are secure and must be preserved, so Hungary welcomes the fact that EBRD has included the issue of energy security in its support program in response to the Russia-Ukraine war. He urged EBRD to work out and implement the financing modalities as soon as possible.

In addition to energy security, the EUR 2 billion could also be used to support local authorities and businesses. Established in 1991 to support the economies of Central and Eastern Europe and the former Soviet space, the London-based financial institution’s program is the first round of support: The bank is ready to help with the reconstruction and rehabilitation of infrastructure. The minister indicated to the president of the EBRD that Hungary is also ready to cooperate in this.

Varga said that Hungary continues to count on the active role of EBRD, which has so far made nearly 200 investments in Hungary worth more than HUF 1 trillion. The framework for cooperation between Hungary and EBRD is the 5-year country strategy adopted last year. 

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