Hungary bets on cheap but risky Russian gas

Hungary faces a dilemma as it remains heavily reliant on Russian gas, even as other EU nations diversify their supplies in response to the war in Ukraine. With most of its gas imported via the TurkStream pipeline and smaller volumes sourced from neighbouring countries and Croatia’s LNG terminal, Hungary benefits from Russia’s favourable pricing and dependable delivery under a long-term agreement. This dependency carries geopolitical and supply risks, but due to Hungary’s landlocked geography and lack of diversification, it appears unlikely to reduce its reliance on Russian gas in the near future. Reporting by Laurence Walker, Deputy Editor-in-Chief, Montel News. Contributors: Tamas Pletser, Analyst, Erste Investment; Gábor Szatmári, Head of Eastern European Sales Region, Montel Analytics.