Hungary supports the Southstream pipeline

Hungary supports Southstream Russian pipeline

The Hungarian government's decision's to put Budapest in a swing position between European and Russian energetic plans, both supported by Budapest. The competition between the Nabucco and the Southstream pipeline increases

Hungary's support to the Southstream pipeline is a decision which can strongly influence not only the EU energetic policy, but also Budapest's position in international geopolitics.

On Wednesday, the 10/31, the Hungarian government allowed Russia to build in Hungary the Southstream pipeline.

The Southstream pipeline has been planed by Russia to foster EU dependence on Russian gas supplies and avoid the building of Nabucco.

The Nabucco is a pipeline conceived by the European Commission to carry Azeri gas directly to Europe, in order to diversify Europe'a gas supplies.

Hungary's position is quite ambiguous. On the one hand, Budapest last September declared Hungarian government's political support to the Nabucco project together with Austria, Turkey, Romania and Bulgaria.

On the other hand, Hungarian PM Victor Orban - a moderate who leads a conservative coalition - adopted the same former socialist government's position lobbying Russian energetic interests in the European energetic and political market.

The Southstream, which is co-owned by the national Russian major Gazprom, the Italian concern ENI, the German energetic company Wintershall, and the french company EDF, has been criticized by the European Union as a project which aims to stop the EU plans of gas supplies' diversification.

The Southstream will carry 69 bcm of Russian gas per year from the Russian coast on the Black Sea to Bulgarian Varna town.

From Bulgaria, a section will carry Russian gas in Greece and Italy, and another section will go to Macedonia, Serbia, Macedonia, Hungary and Slovenia.

The Nabucco pipeline is co-owned by the Austrian company OMV, the German RWE, the Hungarian MOL, the Romanian Transgaz and the Bulgarian Bulgargaz.

The Nabucco pipeline will carry 16 bcm of Azeri gas per year from Turkish-Greek border to Austrian  terminal in Baumgarnter via Hungary, Romania and Bulgaria.

Nabucco pipeline obtained the political support of Vysegrad Group's countries - Poland, Czech Republic, Slovakia and Hungary - and the European Commission's official endorsement.

Matteo Cazzulani