Orbán negotiated oil and gas in the Kremlin. He rejects confiscation of Russian assets

Hungarian Prime Minister Viktor Orbán arrived in Moscow on Friday to meet Russian President Vladimir Putin. In a Facebook status, he announced that the topic of the talks would be the supply of fossil fuels, for which Budapest recently received an exemption from US sanctions.

"I'm going to secure energy supplies for Hungary for the winter and next year," Orbán explained the reason for his visit. Asked whether the leaders would also discuss peace efforts in the context of the war in Ukraine, he replied that the topic "can hardly be avoided".

Putin told Orbán that he would still be happy to hold the "indefinitely postponed" summit in Budapest. On the Russia-Ukraine war, he praised the Hungarian prime minister's "balanced" approach, affirming that Russia has always been part of Hungary's energy resources "and will remain so in the future."

Like a stake in a fence

Since the start of the war in February 2022, Budapest has maintained pragmatic relations with Moscow and openly accepted investment from China, which has been the basis of criticism from both Ukraine and the European Union. The latter argues the latter is "undermining the united action" of the European Twenty-Seven.

Orbán, however, has not been shamed and in early November criticised the West for severing diplomatic ties with Russia, making it unable to hold a dialogue with a view to achieving peace.

In August, he indirectly invited French President Emmanuel Macron and German Chancellor Friedrich Merz to also travel to Moscow for talks with Putin.

Hungary also featured prominently in the pages of the world media in October, when it was due to be the venue for a second summit between Putin and Trump. However, the two sides, who met in August in Alaska, postponed plans for the meeting indefinitely.

In addition, on October 22, the US Treasury Department imposed sweeping sanctions on energy companies Rosneft and Lukoil, which generate revenue from fossil fuel sales and are the basis for funding the Russian state - and thus the war in Ukraine.

During Trump's visit to the White House on 7 November, Orbán succeeded in negotiating an exemption for the MOL concern, of which Slovnaft is a part. After the negotiations, the Hungarian leader said that the exemption from sanctions was unlimited, but Washington responded that it was only valid for one year.

Energy is a burning issue

Before leaving for Washington, the Hungarian leader also recalled that he wanted to resume discussions on the postponed Budapest summit between the presidents of the major powers. At the European level, he criticised the planned economic instrument RePowerEU, which was originally intended to end all fossil fuel supplies from Russia from 1 January 2028.

The instrument was also criticised by Slovak Prime Minister Robert Fico, who admitted in the summer that its approval could not be blocked, as a qualified majority in the EU Council would be sufficient. He therefore blocked the adoption of the 18th package of anti-Russian sanctions, which must be voted unanimously.

Austria also blocked the latest sanctions package so far, but it was finally approved by member states on 23 October.

Confiscation of Russian assets also raises concerns in the West

Russia has almost €200 billion in assets stored in the Belgian clearing system Euroclear. Since the start of the war, the Belgian government has frozen them, but they are still generating revenues - which, according to both the Commission and the G7 plans, were to be used to finance Ukraine or its post-war reconstruction.

In December 2024, Ukraine received a billion-dollar loan backed by Russian assets deposited in the US. The European principal has not yet reached Kiev, and this potential move immediately became the target of criticism, and not only from Russia.

Moscow refers to the possible confiscation of assets as theft, but voices warning against seizure of Russian assets are increasingly heard in the West as well. The reason for this is the loss of confidence in Europe as a natural consequence of this machination and also the threat to the investment climate.

The Belgian Prime Minister, Bart De Wever, has rejected the seizure of EUR 140 billion that was planned by several Member States only last month. He sent a letter to Von der Leyen on Thursday warning the Commission that the confiscation of Russian assets would jeopardise peace efforts.

On Friday, a Commission spokesman confirmed the receipt of De Wever's letter, the existence of which was previously reported only by the British Financial Times. According to the office, "intensive discussions" are underway regarding the confiscation, which also includes talks with Belgium.

"We have full confidence in our legal teams who are assessing the situation in relation to these assets," the spokesman concluded.

Merz and the Slovenian prime minister also intervened

German Chancellor Friedrich Merz and Slovenian Prime Minister Robert Golob also spoke on the issue at a joint press conference. They criticised Orbán's actions. Merz said Union leaders "have known Viktor Orbán's attitude for years", recalling a visit last year at the start of Hungary's EU Council presidency.

"He travels without a European mandate and without consulting us," he stressed. On the issue of the seizure of Russian assets, Merz has traditionally expressed a tough anti-Russian stance and said he considers the issue "increasingly urgent".

"Ukraine needs our support. Russian attacks are intensifying. Winter is coming, or is already here. And in this respect, I hope that we will reach a common solution within the European Union," he added.

Golob added that the frozen assets should be used "to make peace" in the nearly four-year-old war. The Hungarian prime minister, he said, "has not been playing with the European team for some time and this visit is taking place in that context."

(reuters, sab)