Hungary and Bulgaria Try to Keep Russian Gas Flowing

By Julianne Geiger – Dec 13, 2024, 11:30 AM CST

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For Hungary, Russian gas is a lifeline they’re not ready to cut, even as Europe tries to move on from its reliance on Moscow. Prime Minister Viktor Orban recently sat down with Vladimir Putin to talk shop and make sure Hungary stays warm this winter.

Bulgaria, on the other hand, has hinted that it’s willing to play hardball. If Gazprom fails to sort out payments, they might shut down the transit of gas through their territory—a move that could ripple through Central Europe.

Both countries share one thing in common: they are trying to protect their energy security without stirring up a geopolitical storm.

Last week, Russian President Vladimir Putin has scrapped the requirement for natural gas payments to be processed exclusively through the sanctioned Gazprombank. European buyers can now settle payments via other banks, a significant shift that briefly calmed markets, with European gas benchmark prices dropping by 2.3%. The decision comes amid heightened tensions after the U.S. sanctioned Gazprombank last month as part of broader measures against Moscow for its ongoing war in Ukraine. The market became jittery out of fear of a potential disruption in Russian gas supplies to Europe, particularly for Central European nations like Hungary, which rely heavily on these imports.

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