With energy in mind, Hungary PM in Russia

Published: Mar. 22, 2007 at 9:02 AM

Hungarian Prime Minister Ferenc Gyurcsany is in Moscow Thursday amid speculation he may sign a separate gas supply deal with Russia, a move he rejects.
 

In an interview with the Nepszabadsag published Wednesday, Gyurcsany was asked if Budapest had any intention of signing a side deal with Russia that may go against European Union policy.
 

"No, we do not," he replied.
 

Gyurcsany said, however, that Russia and the EU were mutually dependent - with Europe being Russia's No. 1 customer and Russia being the bloc's main energy source.
 

"We are co-dependent, and the truth is that both parties are less aware of this co-dependency than of their own vulnerability. ... In my opinion, only a comprehensive European-Russian agreement, one that takes the interests of both parties into account, can provide a long-term solution."
 

He noted that several European countries were forging their own deals with Russia, pointing to Germany's undersea pipeline.
 

"Hungary is saying that its most important national interest ... is to ensure the security of our natural gas supplies in the long term," he said. "For that, we need at least one pipeline apart from the one that goes through Ukraine."
 

Two such pipelines have been proposed: Nabucco and Blue Stream. Hungary is believed to prefer Blue Stream, but has said it won't make a decision until it is clear which is viable.
 

"Some reproach Hungary for considering the Blue Stream pipeline. Well, the reason is that it is not certain yet that the Nabucco pipeline will be built at all," he told the newspaper. "Hungary does not want to fall between two stools. The Nabucco pipeline has been in the planning phase for 10 years."
 

UPI Energy Watch reported on Wednesday that Russian gas giant Gazprom and Hungary's MOL are conducting a feasibility study on the possible Southern European extension of the Blue Stream pipeline, which connects Russia and Turkey.
 

Nabucco is designed to increase gas supplies in the region and would bring mostly Central Asian gas to Europe. It would be developed by private companies and energy firms form Austria, Hungary, Romania, Bulgaria and Turkey are drawing up plans for the pipeline.