BUDAPEST (Reuters) – Hungary plans to pay for Russian gasoline in euros by Gazprombank, which can convert the cost into roubles to satisfy a brand new requirement set by President Vladimir Putin, Overseas Minister Peter Szijjarto mentioned on Monday.
Putin has warned Europe it dangers having gasoline provides reduce except it pays in roubles as he seeks retaliation over Western sanctions for Moscow’s invasion of Ukraine.
Beneath the scheme, Hungarian power group MVM’s subsidiary, CEE Power, would pay an upcoming invoice in euros, which Gazprombank would convert into roubles after which switch to Russia’s Gazprom Export, Szijjarto instructed a information convention.
With weeks go to earlier than payments are due, the European Fee has mentioned that these with contracts requiring cost in euros or {dollars} ought to persist with that.
Prime Minister Viktor Orban mentioned final week Hungary was ready to pay roubles for Russian gasoline, breaking ranks with the European Union which has sought a united entrance in opposing Moscow’s demand for cost within the foreign money.
“As for paying in roubles, we now have an answer that doesn’t violate any sanctions however on the identical time it secures Hungary’s gasoline provide,” Szijjarto mentioned.
Szijjarto mentioned the choice to pay payments in one other foreign money relatively than euros was included in a bilateral contract between CEE Power and Gazprom Export concluded in September, which can now be modified to mirror the deliberate adjustments.
He didn’t go into element and it was unclear whether or not the falls within the Russian foreign money would have an effect on the brand new cost phrases in any means.
Szijjarto added that Hungary, which depends on Russia for many of its oil and gasoline, opposed the EU taking a joint strategy to the problem, which Budapest considers a bilateral matter.
Orban, whose authorities has pursued shut enterprise relations with Moscow for over a decade, swept to energy for a fourth consecutive time period in elections per week in the past, partly on a pledge to protect safety of gasoline provide for Hungarian households.
The European Union’s govt is drafting proposals for an EU oil embargo on Russia, the international ministers of Eire, Lithuania and the Netherlands mentioned on Monday, though there’s nonetheless no settlement to ban Russian crude.
Reporting by Gergely Szakacs and Anita Komuves; Enhancing by Nick Macfie
