Breaking Ranks with EU, Hungary Says Ready to Pay for Russian Gas in Roubles

Hungarian Prime Minister Viktor Orban gives his first international press conference after his FIDESZ party won the parliamentary election, in the Karmelita monastery housing the prime minister's office in Budapest on April 6, 2022. (AFP)
Hungarian Prime Minister Viktor Orban gives his first international press conference after his FIDESZ party won the parliamentary election, in the Karmelita monastery housing the prime minister's office in Budapest on April 6, 2022. (AFP)
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Breaking Ranks with EU, Hungary Says Ready to Pay for Russian Gas in Roubles

Hungarian Prime Minister Viktor Orban gives his first international press conference after his FIDESZ party won the parliamentary election, in the Karmelita monastery housing the prime minister's office in Budapest on April 6, 2022. (AFP)
Hungarian Prime Minister Viktor Orban gives his first international press conference after his FIDESZ party won the parliamentary election, in the Karmelita monastery housing the prime minister's office in Budapest on April 6, 2022. (AFP)

Hungary said on Wednesday it was prepared to pay roubles for Russian gas, breaking ranks with the European Union which has sought a united front in opposing Moscow's demand for payment in the currency.

Hungary will pay for shipments in roubles if Russia asks it to, Prime Minister Viktor Orban told a news conference on Wednesday in reply to a Reuters question.

Russian President Vladimir Putin has warned Europe it risks having gas supplies cut unless it pays in roubles as he seeks retaliation over Western sanctions for Moscow's invasion of Ukraine.

With weeks go to before bills are due, the European Commission has said that those with contracts requiring payment in euros or dollars should stick to that.

Hungary's Foreign Minister Peter Szijjarto earlier said that EU authorities had "no role" to play in its gas supply deal with Russia, which was based on a bilateral contract between units of Hungarian state-owned MVM and of Gazprom.

The European Commission does not comment on declarations from national authorities, a spokesperson said.

Hungary has been one of a few EU member states that have rejected energy sanctions against Moscow in response to the invasion, which Russia terms a "special military operation".

Orban, whose government has pursued close business relations with Moscow for over a decade, swept to power for a fourth consecutive term in elections on Sunday, partly on a pledge to preserve security of gas supply for Hungarian households.

Reliant on Russian gas

While Putin's demand has raised hackles 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 will act in unison with the EU, while Poland's dominant gas company PGNiG has maintained that its original contract with Gazprom which expires at the end of this year is binding on both parties.

Austria's OMV and Russia's Gazprom have had initial contact about paying for gas in roubles, a spokesperson for OMV said on Friday, though the government in Vienna said there was no basis for payment in any currency other than euros or dollars.

Ukraine's foreign minister insisted an embargo on Russian gas and oil is needed but the European Union has so far stopped short, while preparing to propose a ban on coal imports and other products.

European buyers are increasing shipments of coal from across the globe against a backdrop of a proposed EU ban on Russian imports and the scramble to relieve tight gas supplies, according to data and shipping sources.

The European Commission´s intention "that there should be some kind of common response from countries importing Russian gas" was not considered necessary, Hungary's Szijjarto said, adding that nations had individually signed bilateral contracts.

"And ... no one has a say in how we modify our own contract."

Hungary, which is heavily reliant on Russian gas and oil imports, signed a new long-term gas supply deal last year under which Gazprom is expected to ship 4.5 billion cubic meters of gas annually.

Meanwhile, Putin has discussed expanding Moscow's economic cooperation with Belgrade, including in the energy sector, with his Serbian counterpart Aleksandar Vucic.

Serbia's contract for Russian gas expires on May 31. "Talks about the new contract need to be launched as soon as possible," a statement from Vucic's office said.

Latvia's largest gas trader, which is a third owned by Gazprom, has said it is considering whether it should pay in euros or roubles for Russian gas but a Latvian foreign ministry spokesman said: "Latvia does not support paying in roubles and there has to be a common EU approach."

Lithuania has said it will no longer import Russian gas to meet its domestic needs, becoming the first country in Europe to have secured its independence from Russian supplies.

Russian gas deliveries to Europe via three key pipeline routes were broadly steady overall on Wednesday.



Saudi Minister of Industry: Geological Survey Authority to Play Key Role in Mining Over Next 25 Years

Prince Saud and the Minister of Industry during the Authority's ceremony. (Makkah Region)
Prince Saud and the Minister of Industry during the Authority's ceremony. (Makkah Region)
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Saudi Minister of Industry: Geological Survey Authority to Play Key Role in Mining Over Next 25 Years

Prince Saud and the Minister of Industry during the Authority's ceremony. (Makkah Region)
Prince Saud and the Minister of Industry during the Authority's ceremony. (Makkah Region)

Saudi Arabia’s Geological Survey Authority plays a vital role in uncovering the earth’s reserves of metals such as gold, zinc, and copper. According to Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef, this role is set to expand significantly in the next 25 years as the Authority becomes central to advancing the mining sector.

Alkhorayef emphasized the commitment to continuing geological survey and exploration projects, providing critical data to investors. He highlighted initiatives launched by the Authority to transform the mining sector into the third pillar of the national economy.

The minister was speaking during a ceremony celebrating the 25th anniversary of the Saudi Geological Survey Authority. The event, held under the patronage of Prince Khalid Al-Faisal, Advisor to the Custodian of the Two Holy Mosques and Governor of the Makkah Province, was inaugurated by Prince Saud bin Mishaal bin Abdulaziz, Deputy Governor of the region, in the presence of senior officials and distinguished guests.

In an interview with Asharq Al-Awsat, Alkhorayef noted the significant influx of investment in Saudi Arabia’s mining sector.

“There is now a large number of investment applications in the mining sector. We are collaborating with other government entities to ensure site allocations for investors,” he said.

He added that new agreements are being signed daily, both for expansions by existing investors and for new entrants to the sector.

The data obtained from geological surveys and the Authority’s digital platform has positioned Saudi Arabia as a prime destination for mining investments,’ he stressed.

“The results we achieve through geological surveys and accurate data collection make Saudi Arabia a key focus for companies seeking to expand in the mining sector to secure future resource supplies,” added Alkhorayef.

He also underscored efforts to verify data through additional sampling and by concentrating on areas with the richest deposits, which enhances the credibility of Saudi mining data globally.

Saudi Arabia has implemented extensive geological survey projects, covering over 85% of the country’s territory through advanced geophysical and geochemical techniques.

Alkhorayef highlighted the General Geological Survey Program and the initiative to build a National Geological Data Repository. These efforts have increased the estimated value of the Kingdom’s untapped mineral resources from SAR 4.9 trillion in 2016 to SAR 9.4 trillion at the beginning of 2024.

At the ceremony, the Deputy Governor of Makkah Province unveiled the Saudi Geological Survey Authority’s new logo, reflecting its geological identity and ongoing efforts to map the Kingdom’s resources while promoting cultural and environmental awareness. The event also included recognition for the Authority’s founding committee members and ceremony sponsors.

Alkhorayef noted that the Authority has completed more than 500 specialized projects across various earth science fields. These include geological mapping at various scales, mineral exploration, geophysical, geochemical, and marine surveys, geological hazard monitoring and mitigation, and mining research and studies.

He pointed to the Authority’s emphasis on developing its human resources, recognizing that their dedication and expertise have been pivotal to its success and to earning widespread acclaim for its accomplishments.

In his remarks marking the Authority’s 25th anniversary, Alkhorayef acknowledged the significant national efforts in exploring mineral wealth over the past quarter-century.

These efforts have led to major discoveries that have positively impacted multiple sectors, he said, adding that discoveries of key minerals like phosphate, potassium, gold, and silver, as well as strategic mineral reserves, have bolstered investments and spurred the growth of the mining sector.