Hungary says rising energy prices cost the country 10 billion euros

The rise in energy prices in Hungary cost 10 billion euros, a huge amount is leaving the country’s economy, declared Hungarian Prime Minister Viktor Orban in an interview with the Magyar Nemzet newspaper.

According to him, the hostilities in Ukraine and the subsequent rise in energy prices pushed Hungary into a dangerous situation: before the start of the conflict and the imposition of sanctions against Russia, the republic paid 7 billion euros a year for energy imports, and in 2022 these expenses increased significantly.

“Now this amount is 17 billion euros, so we had to create a difference of 10 billion euros. This is 4,000 billion HUF, and today this huge amount is leaving the Hungarian economy,” Orban said.

According to the Hungarian prime minister, the lifting of energy sanctions would drop energy prices “in an instant”, and inflation would also decrease.

“Hungary could plan growth not by one and a half percent next year, but even by five percent,” Orban said.

Hungary has repeatedly criticized sanctions against Russia. In particular, on December 6, Orban called for a review of sanctions against Russia. According to him, Europe and the United States are paying different prices for the consequences of the conflict in Ukraine. The prime minister also said that sanctions “could bring Europe to its knees.”

Earlier, the EU countries agreed on a price ceiling for Russian oil after a week of consultations, the corresponding document was published on December 4 in the official journal of the EU. It is proposed to set the limit at $60/bbl. with subsequent adjustment every two months starting from January 2023. Hungary, Bulgaria, Slovakia, the Czech Republic and Croatia will be able to buy Russian oil at a higher price. These countries are more dependent on Russian oil supplies than others in Europe, so they were also allowed to receive it through the Druzhba pipeline.

On December 19, the EU countries also agreed on a gas price limit of 180 euros per 1 MWh, which corresponds to $1,975 per 1,000 cubic meters. m. The ceiling will come into force on February 15, 2023. Hungarian Foreign Minister Peter Szijjarto said on the same day that nine EU countries, including Germany and Hungary, spoke out against the establishment of a price ceiling for gas in a test vote during a meeting of energy ministers.