View all newsletters
Receive our newsletter - data, insights and analysis delivered to you

Russia agrees gas transit deal with Hungary, bypassing Ukraine

The foreign minister of Hungary has confirmed a 15-year deal with Russian authorities for gas transit through the country’s pipelines.

By Matt Farmer

Hungary’s foreign minister Peter Szijjarto has confirmed a 15-year deal with Russian authorities for natural gas. The new deal bypasses Ukrainian pipelines, which are currently key to Gazprom’s infrastructure.

Free Report
img

2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
  • Track the Aggregate Investment Volumes in PE/VC-Stage firms across geographies and sectors, in addition to viewing the specific deals that drove these volumes
  • Identify the top investors already active in any sector-Geography combinations
  • Assess the Performance of Financial and Legal Advisors, supporting the Dealmaking in any segment of choice (Customizable League tables)
  • Understand what is driving the PE/VC fundraising (Deal Rationale)
  Consult our full report here and optimize your business strategy.
by GlobalData
Enter your details here to receive your free Report.

The new deal will take effect in October, after the current deal agreed in 1995 ends. Szijjarto said he found the agreed price in the new deal “much more favourable”, though he did not provide figures.

Under the new deal, Gazprom will ship 3.5 billion cubic metres of gas via Serbia, and 1 billion cubic metres via Austria. This marks a 7% increase on the 4.2 billion cubic metres Hungary used last year.

The current deal relies on Ukrainian pipelines connected directly to Russia refineries. Since the signing of this deal, Russia and Hungary have both expanded their international gas interconnectors, giving more trade options.

Ukrainian officials have recently voiced fears that Russia would use the Nord Stream 2 pipeline to decrease the flow of gas through the country. Ukraine currently derives more than $3bn in transit fees from gas flowing through its borders. The new deal may signal the start of large gas export growth to central Europe, or a redirection of existing gas flows. However, Ukrainian officials may interpret the deal as Russian reluctance to further invest in Ukrainian infrastructure.

Geopolitical analysts have said that Hungarian prime minster Viktor Orban’s favour for Russia might have influenced the deal. Orban has repeatedly supported the end of EU sanctions on Russia, while blocking several key EU climate votes.

The two countries have also started collaborating on the construction of the Paks 2 nuclear plant in Hungary. Last week Russian foreign minister Sergey Lavrov said negotiations continued with “no grounds for any issues to arise”.

Related Companies

Free Report
img

2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
  • Track the Aggregate Investment Volumes in PE/VC-Stage firms across geographies and sectors, in addition to viewing the specific deals that drove these volumes
  • Identify the top investors already active in any sector-Geography combinations
  • Assess the Performance of Financial and Legal Advisors, supporting the Dealmaking in any segment of choice (Customizable League tables)
  • Understand what is driving the PE/VC fundraising (Deal Rationale)
  Consult our full report here and optimize your business strategy.
by GlobalData
Enter your details here to receive your free Report.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Friday. The industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Offshore Technology