Hungary strikes raft of deals during visit of Russian foreign minister

By bne IntelliNews May 25, 2016

Hungary has announced it brokered several deals to "increase regional cooperation with Russia and incentivize investments by Hungarian businesses in the country," during the visit of Russian Foreign Minister Sergei Lavrov to Budapest on May 25.

Prime Minister Viktor Orban has repeatedly provoked criticism from Brussels and Washington over over his high profile meetings with Russian politicians, including President Putin, over the past couple of years. The Hungarian leader insists he owes no apology for striking deals on nuclear power and gas. that he says are in the interests of the country. The meeting with Lavrov and announced deals came as the EU prepares to extend sanctions against Moscow.

In step with the US, the EU imposed economic sanctions on Russia over its annexation of Crimea and support for separatists in eastern Ukraine. The issue is back on the table as the current sanctions are due to end in July. Hungary made clear in March that it objects the “automatic” extension of the sanctions.

Hungarian Foreign Minister Peter Szijjarto claimed, however, that "nobody should be worried about” Lavrov’s visit, as it serves Hungarian, Russian and also European interests. Szijjarto pointed out that Hungarian-Russian trade flows fell by 47% last year and has fallen by a further 25% this year. Hungarian businesses have suffered export losses of $4.5bn, he also complained.

“Hungary’s and Russia’s common goal is to slow and eventually stop the rate of reduction of bilateral trade flow,” Szijjarto said. 

The official announced Hungary has agreed four regional co-operation deals with Russia, but provided few details. He added that Hungary aims to provide incentives for investments by Hungarian companies in Russia.

A Hungarian meat processing plant will be opened near Moscow, financed by loans from Hungary’s Eximbank. Meanwhile, an unnamed Hungarian company will participate in the construction of one of the stadiums for the 2018 FIFA World Cup in Russia. Hungarian pharmaceuticals manufacturer Richter "is ready to begin a full production process in Russia," Szijjarto added.

On the same day, local press reported that the Russian minister of industry confirmed that Moscow is considering the establishment of a joint Hungarian-Russian airline. Hungary was reported in February to be in negotiations with Russian aircraft manufacturer Sukhoi over plans to launch a new national air carrier.

Related Articles

Waberer’s finally set to deliver an IPO on Hungarian bourse

Hungarian trucking company Waberer’s International is preparing for an IPO on the Budapest Stock Exchange in July, according to media claims. If accurate, the reports will be hugely welcome in ... more

Hungarian PM's "proxy" moves into the nuclear industry as Paks tenders approach

Firms controlled by Hungarian oligarch Lorinc Meszaros have purchased a 51% stake in the Hungarian subsidiary of Czech nuclear ... more

RBI doubles net profit y/y in Q1 as Russian business recovers

Raiffeisen Bank International (RBI), the second largest bank operating across Central and Eastern Europe by assets, reported that net profit almost doubled year-on-year to €220mn in the first ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss