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Gazprom signs 15-year gas supply contract with Hungary

Gazprom and Hungary have agreed on gas supplies by the end of 2036, RIA Novosti reports.

The signing ceremony took place in Budapest, attended by Deputy Chairman of the Management Board, General Director of Gazprom Export Elena Burmistrova and Hungarian Minister of Foreign Affairs and Foreign Economic Relations Péter Szijjártó.

Gazprom explained in its message that two long-term contracts for the supply of Russian gas to Hungary were signed between Gazprom Export and MVM CEEnergy Ltd.

The total volume of contracts is up to 4.5 billion cubic meters, the duration of each of them is 15 years.

Earlier, Péter Szijjártó told RIA Novosti that the Hungarian side will receive 4.5 billion cubic meters of gas per year throughout the entire term of the contract. Of these, 3.5 billion will go through Serbia and a billion through Austria.

“Another important component of the new agreements is the diversification of the routes of such supplies. As early as October 1, Hungary will start receiving gas from Gazprom through the Turkish Stream gas pipeline and further through the gas transmission systems of South-Eastern Europe,” Burmistrova said.

The agreement, which will enter into force on October 1, provides for the possibility of changing the terms in ten years.

At the end of 2020, Hungary imported 8.6 billion cubic meters of Russian gas. This is the second largest figure in 12 years.

Kiev said it was disappointed with Hungary’s decision to bypass Ukraine.

The country’s Foreign Ministry promised to ask the European Commission to check the contract for compliance with European energy legislation.

Source: RIA Novosti