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.



Iraq Oil Output Exceeds 5 million bpd

Majnoon oil field near the Iraqi city of Basra (Reuters)
Majnoon oil field near the Iraqi city of Basra (Reuters)
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Iraq Oil Output Exceeds 5 million bpd

Majnoon oil field near the Iraqi city of Basra (Reuters)
Majnoon oil field near the Iraqi city of Basra (Reuters)

Iraq produces more than 5 million barrels of oil per day (bpd), Oil Minister Basim Mohammed told state news agency INA on Saturday.

According to Reuters, Iraq is pushing for a higher OPEC production quota as the economic fallout from the Iran war and new investment by oil majors increase pressure on Baghdad to boost output, potentially putting it at odds with the producer group.

The conflict has hit Iraq particularly hard, forcing major export cuts and depriving the state of oil revenue, which accounted for 88% of government income last year.


IMF: Any Slowdown in AI-driven Growth Would be Factor for Central Banks

IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
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IMF: Any Slowdown in AI-driven Growth Would be Factor for Central Banks

IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)

Central bankers around the world would need to consider any slowdown in AI-driven growth as they assess steps in their fight against inflation, International Monetary Fund Managing Director Kristalina Georgieva said on Friday.

Georgieva said concerns about dependence on the AI investment boom and high valuations were impacting markets around the world.

"Things are going up and down, and this is likely to continue," she told an audience at IMF headquarters in Washington, adding that the volatility would complicate the job of central banks at a time when risks to price stability had been growing.

A steep rout in technology stocks on Thursday rippled through markets on fears that ⁠the Democrats' victory ⁠in the US midterm elections would increase regulatory scrutiny of AI and slow the data center build-out, sending investors to the safety of bonds.

The political jitters are hitting an AI trade already on shaky footing due to worry about return on massive spending on AI-related infrastructure, with the meltdown spurring margin calls and spooking retail investors and hedge ⁠funds alike.

Georgieva said the AI investment boom was lifting growth in some countries, helping to offset a negative oil-supply shock triggered by the war in the Middle East, but it was also adding to inflationary pressures and financial stability concerns.

The IMF last month flagged significant growth and financial stability risks from a potential ending of the AI investment boom, among other factors, including a prolonged Middle East war. At the time, it warned that a steep drop in AI investment could lead to a sharp fall in asset prices, ultimately cutting global GDP ⁠by 1.1% ⁠by 2028, including a 1.8% drop in US output.

Georgieva did not repeat the downside forecast on Friday, but acknowledged the recent market volatility.

"Should there be a slowdown in the AI-driven growth impulse, it would need to be factored in as central banks assess the necessary steps in the fight against stubborn inflation," she said.

Democrats are planning to unleash a flood of new legislation targeting artificial intelligence systems and data-center development when they take control of the US Congress in January, Reuters reported on Friday, citing congressional aides and advocates.

That would mark a sharp shift from the Republican-led Congress, where lawmakers largely focused on promoting AI development and declined to pass legislation restricting the technology.


World Food Prices Dip in October, but Remain Higher Than a Year Ago

A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
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World Food Prices Dip in October, but Remain Higher Than a Year Ago

A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)

World food prices edged lower in October as weaker import demand contributed to monthly declines in cereal, dairy and meat prices, but were still nearly 6% higher than a year earlier, the United Nations' Food and Agriculture Organization said on Friday.

The FAO Food Price Index, which tracks monthly changes in international prices for a basket of food commodities, ‌averaged 133.9 points ‌in October, down from a revised ‌135.6 ⁠in September.

The index ⁠was 5.9% higher than a year earlier, but remained 16.4% below its March 2022 peak.

FAO's cereal price index fell 4.5% from September and was 12.6% lower than a year ago, as wheat and maize quotations declined. Wheat prices eased on weak import demand ⁠and improved production prospects, especially in Argentina.

"Expectations of ‌easing constraints on Black ‌Sea export flows added to the downward pressure on prices, ‌although continued disruptions to Black Sea logistics limited the decline," ‌FAO said in a statement.

Maize prices also eased after reaching a three-year high in September, pressured by the US harvest, expectations of ample supplies in South America and renewed ‌prospects of easing tensions in the Black Sea region.

Vegetable oil prices edged up 0.3%, ⁠as ⁠higher soybean and sunflower oil prices more than offset a fall in rapeseed oil prices.

Sugar prices rose 6.6%, their fourth straight monthly increase, to the highest level since December 2024, after rainfall disrupted harvesting in Brazil. They were now 28.8% above a year ago.

The dairy index fell 1.1%, as lower butter and cheese prices linked to ample supplies and subdued demand outweighed gains in milk powder.

The meat index declined 1.2%, while still slightly above its year-earlier level, as ovine and bovine meat prices fell.