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Hungary Requests Removal of EU Plan to Phase Out Russian Energy

Hungary's Foreign Minister calls for the withdrawal of a proposed EU strategy to sever dependence on Russian oil and gas amidst ongoing geopolitical tensions.
Hungarian Foreign Minister Péter Szijjártó stated on Monday that the Hungarian government is requesting the European Union to withdraw the proposed plan aimed at phasing out Russian energy imports.

This call came ahead of a scheduled meeting of EU energy ministers in Luxembourg, during which Szijjártó anticipated ‘a great battle’ regarding the proposed measures.

The discussions are part of an ongoing initiative that began following a summit of the European Council in March 2022, where EU leaders collectively agreed to eliminate Europe's dependency on Russian energy imports ‘as swiftly as possible’.

The Council has since reaffirmed that the EU will gradually cease imports of Russian gas, oil, and coal, while considering the national circumstances and energy structures of member states.

In May, the European Commission presented the REPowerEU plan, designed to expedite the transition away from Russian energy.

Hungary received approximately one billion euros in advance funding from the EU's recovery fund despite facing challenges related to the rule of law in accessing funds.

Szijjártó criticized the proposed plan, asserting that it would impose additional financial burdens on Hungary, potentially resulting in a situation where Hungarian citizens would face energy costs two to four times higher than current rates.

He described the dynamics within the EU as Brussels capitulating to Kyiv, implying that the discussions are politically charged rather than purely technical.

Hungary's request to delay the phase-out of Russian energy sources was triggered by the recent escalation in the Israeli-Iranian conflict.

Prime Minister Viktor Orbán announced that the government would officially propose to the EU to reconsider the timeline for an exit from Russian energy imports and to conduct an impact assessment regarding the consequences of the situation in the Middle East.

On the same day, Szijjártó stated that Hungary, in conjunction with Slovakia, vetoed a council resolution expressing expectations for progress on the energy exit plan.

The resolution indicates that the EU Commission aims to present a legislative proposal soon, which requires unanimous approval from all member states.

The European Commission's spokesperson addressed questions regarding Hungary's request, confirming that there are no import relations with Iran and that reserves are in place to ensure supply continuity.

The Commission aims to send a strong signal to Russia, emphasizing the EU's commitment to preventing any exploitation of energy supplies as leverage in geopolitical conflicts.

Following Monday's ministerial meeting, Danish Energy Minister Dan Jørgensen noted the importance of ensuring that no member state faces energy shortages, reiterating a commitment to support all countries’ energy needs while keeping prices low.

He also acknowledged the challenges associated with nuclear energy discussions, hinting that reductions in reliance on Russian nuclear sources might not be fully addressed in upcoming proposals.

Szijjártó indicated a longer debate ahead, highlighting concerns about Hungary's energy supply and its potential impact on electricity exports to Ukraine.

He specified that disruptions to Hungary's energy system could affect its ability to continue supplying power to Ukraine, which has already faced interruptions in its gas transit through Slovakia.

Discussions during the council meeting also raised legal challenges pertaining to existing contracts with Russian suppliers.

Szijjártó emphasized that Hungary's long-term agreements with Russia could complicate any abrupt changes in policy, with questions arising over liability should legal disputes occur.

The Hungarian government has previously committed to addressing the EU's energy transition while balancing national interests, navigating complex interdependencies with energy suppliers amidst the regional geopolitical landscape.
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