BUDAPEST, April 9. /TASS/. The Hungarian energy company MVM CEEnergy would like to retain the agreement with Gazprom on the supply of Russian gas through Ukraine, since it considers this route important in terms of the country's energy security, Laszlo Fritsch, CEO of MVM CEEnergy said in an interview with TASS.
Fritsch, who took part in an international conference in Budapest on the supply of liquefied natural gas to the European market, commented on Ukraine’s intention not to renew the agreement with Gazprom on the transit of Russian gas to Europe through its territory after 2024.
The top executive recalled that Hungary receives the bulk of Russian gas through the TurkStream pipeline and its branches in Bulgaria and Serbia.
"The other route is through Ukrainian transit basically which means that this route is also important for us. Maybe, it’s not vital but it’s very much important and contributes to the security of the supply of Hungary," Fritsch said.
"I don't know what is going to happen in the next couple of months but I would definitely doubt that having this pipeline over there that is very much important not only for Hungary but also for Slovakia, Czech Republic, Austria, basically for all the countries in the region, that there would be zero gas flow in the future [through this pipeline]," the head of MVM CEEenergy said.
When asked if the Ukrainian side can conclude a transit agreement not with Gazprom, but with gas recipients from among European companies that will buy Russian gas at the border, Fritsch confirmed that this possibility "is considered for the time being."
"There is also discussion on the European level as well on what is going to happen after the 31st of December, but I’m sure we will find a solution," he said.
He admitted that he does not yet know what way out of this situation will be found, but there is still time.
"We are in April and I think we still have a lot of time before the 31st of December," says Fritsch. According to him, all parties are aware of this problem and are looking for ways to solve it, but there have not yet been any substantive negotiations on this topic between the Hungarian and Russian partners.
In September 2021, MVM CEEnergy concluded two contracts with Gazprom for a period of 10 years with the possibility of a five-year extension, which provided for annual supplies of 4.5 billion cubic meters. Gas was supposed to flow to Hungary along two routes bypassing Ukraine: through Austria in the amount of 1 billion cubic meters per year, as well as through the TurkStream pipeline and its branches through Bulgaria and Serbia in the amount of 3.5 billion cubic meters.
It was assumed that the Austrian hub in Baumgarten, one of the largest in Europe, would receive Russian gas through Nord Stream, but when this pipeline was stopped after sabotage, it was necessary to use the route running to Austria through Ukraine and Slovakia. Currently, deliveries from Baumgarten to Hungary are carried out only occasionally and in small volumes.
In October 2022, MVM and Gazprom agreed to increase supplies along the southern route through Turkey, and gas transportation through Ukraine began to decline. In 2022, 4.8 billion cubic meters of gas were supplied to Hungary via the TurkStream and its extension through Bulgaria and Serbia. According to Hungarian data, in 2023 this figure will increase to 5.6 billion cubic meters.