Sign up now for FREE unlimited access to Reuters.com Register BUDAPEST, April 6 (Reuters) – Hungary said on Wednesday it was ready to pay rubles for Russian gas, breaking ties with the European Union, which has sought a united front in opposition to Moscow’s demand for currency payments. Hungary will pay for the shipment in rubles if Russia so requests, Prime Minister Viktor Orban told a news conference on Wednesday, when asked by Reuters. Russian President Vladimir Putin has warned Europe that it risks cutting gas supplies unless it pays in rubles, as it seeks revenge for Western sanctions on Moscow’s invasion of Ukraine. Sign up now for FREE unlimited access to Reuters.com Register As the weeks go by before the bills are paid, the European Commission has said that those who have contracts that require payment in euros or dollars should abide by this. read more Hungarian Foreign Minister Peter Szijjarto said earlier that EU authorities had “no role” in playing the gas supply deal with Russia, which was based on a bilateral agreement between units of the Hungarian state-owned MVM and Gazprom. Hungary was one of the few EU member states to reject energy sanctions against Moscow in response to what Russia calls a “special military operation.” Prime Minister Victor Orban, whose government has had close business ties with Moscow for more than a decade, has risen to power for a fourth consecutive term in Sunday’s election, in part on a commitment to safeguard gas supplies for Hungarian households. BASED ON RUSSIAN GAS While Putin’s demand has caused unrest in many of Europe’s capitals, its governments – which on average rely on Russia for more than a third of their gas – are discussing the issue with energy companies. On Monday, Slovakia said it would act jointly with the EU, while Poland’s dominant gas company PGNiG said its initial contract with Gazprom, which expires at the end of this year, is binding on both parties. In Austria, energy company OMV (OMVV.VI) said on Friday that it had initial contact with Gazprom regarding the payment of gas in rubles, although the Vienna government said there was no basis for payment in any currency other than euros or dollars. read more The European Union has so far not imposed sanctions on oil and gas from Russia, but is preparing to propose a ban on imports of coal and other products. read more The European Commission’s intention “that there should be some kind of joint response from the countries importing Russian gas” was not considered necessary, Szijjarto said, adding that the countries have signed individual bilateral agreements. “And no one has a say in how we modify our contract.” Hungary, which is heavily dependent on Russian gas and oil imports, signed a new long-term gas supply agreement last year, under which Gazprom is expected to ship 4.5 billion cubic meters of gas a year. Putin, meanwhile, discussed expanding Moscow’s economic co-operation with Belgrade, including in the energy sector, with his Serbian counterpart, Aleksandar Vucic, on Wednesday. read more Serbia’s contract for Russian gas expires on May 31st. “Discussions on the new contract should begin as soon as possible,” a statement from Vucic’s office said. Russian gas deliveries to Europe via three main pipeline routes remained broadly stable on Wednesday morning, with flows east to Poland from Germany zeroing after a brief resumption of the night. Sign up now for FREE unlimited access to Reuters.com Register Report by Krisztina Than and Gergely Szakacs. additional references y Marek Strzelecki and Ivana Sekularac. written by Nina Chestney. curated by Hugh Lawson, Jason Neely and John Stonestreet Our role models: The Thomson Reuters Trust Principles.
