GKI analysis: Russian gas exposure – Could it be otherwise?
Hungary’s exposure to Russian energy, which can be traced back to the infrastructure built during the Cold War, causes significant vulnerability from both a political and economic perspective. However, Russian gas dependence did not develop only in Hungary: after the dissolution of the COMECON, other countries in the region also found themselves facing a similar problem.
Some of them recognized the risks of the situation sooner or later. The Baltic countries woke up in 2014, following the Russian occupation of the Crimean Peninsula, and subsequently almost completely disconnected from Russian gas. At that time, only Slovakia among the Visegrad countries recognized the dangers of exposure: the government in Bratislava reduced Russian gas imports by 44% in one year. The Poles and the Czechs needed a little more time, but after the war in Ukraine in 2022, they also almost completely stopped importing Russian gas.
Infrastructure development, the construction of LNG terminals and the rise of renewable energy sources, as well as the decline of energy-intensive industries, contributed to independence in varying proportions. At the same time, re-export (i.e. the purchase of Russian natural gas (LNG) under a different flag) cannot be neglected either. However, the domestic government chose a strategic energy policy: neither Russian gas nor Russian oil imports have decreased significantly in recent years.
The Hungarian government’s main argument for maintaining dependence was previously cheapness, and then (when it turned out that Russian natural gas is even more expensive than other sources) it put economic rationality at the forefront of its communication. The main argument was that without Russian gas, the Hungarian economy would be paralyzed and a significant economic downturn would occur.
Related news
Russian discounter Svetofor struggles amid regulatory and competitive pressure
Russian discounter Svetofor, known in Western Europe as Mere and…
Read more >Retail sales in Russia accelerated and unemployment stagnated at a historic low
Russia’s retail sales accelerated in November, while unemployment remained at…
Read more >Czech breweries do not ship to Russia
Czech breweries do not ship beer to Russia; most of…
Read more >Related news
FAO: World food commodity market index decreased in January
The Food and Agriculture Organization of the United Nations (FAO)…
Read more >The future of the food industry is in the hands of young people
Food safety and quality are of paramount importance not only…
Read more >Bonduelle also helped with canned vegetables and sweets
The charitable cooperation between Bonduelle Central Europe Kft. and the…
Read more >