Page 15 - FSUOGM Week 11 2022

FSUOGM NEWS IN BRIEF FSUOGM

India said to be looking to aggression against Ukraine, Gaspol decided President Ursula von der Leyen said that
to stop purchasing LPG produced in
by 2027 the EU is ready to provide energy
score discounted Russian Russia,” the company said in a statement. security without Russian oil and gas.
To ensure that the EU is ready for the
Gaspol is owned by Dutch company
oil SHV, which “decided to suspend all new next winter season, gas storage facilities will
investment projects in Russia, exports to
be filled to 90% capacity by October.
India could take up a Russian offer to this country and fully complied with all The agreement in Versailles was good
buy crude oil and other commodities sanctions imposed on Russia and Belarus”. news for Hungary, which gets 85% of its
at a considerable discount, as Russian Gaspol is giving up on 20%-30% of gas needs from Russia, and nine out of 10
commodities are seen as toxic amid its the overall volume of LPG supplies, the households use gas for cooking or heating.
military invasion of Ukraine, Reuters company’s CEO Sylwester Smigiel told the "The most important issue for us has
reported citing two unnamed Indian newspaper Puls Biznesu. been settled favourably. There will be no
officials. But Russia’s role in meeting Poland’s sanctions covering oil and gas, which means
As followed by bne IntelliNews, previous LPG demand is much higher. Polish LPG that Hungary's energy supplies will be
unconfirmed reports suggested that China is consumption was 2.34mn tonnes in 2020, guaranteed in the coming period, Orban
holding talks with state-owned energy and out of which 530,000 tonnes was domestic posted on Facebook after the marathon
commodity majors on potential acquisitions production. Of the remaining 2.04mn meeting.
of stakes in Russian energy and commodity tonnes, Russia supplied 65% or 1.33mn Last September, Hungary struck two
companies, amid unprecedented sanction tonnes. long-term contract deals with Russia’s major
pressure on Russia for its military invasion Other, much smaller, source countries gas company Gazprom, which provides for
of Ukraine. are Sweden, Lithuania, Belarus – Russia’s the deliveries of 4.5 bcm meters of gas via
According to Reuters, India would also ally, which is also on the radar for boycotts pipelines in Serbia and Austria, bypassing
want to keep Russia on board as its key and government-level sanctions – and Ukraine.
trading partner, despite western attempts to Kazakhstan. The agreement is for 15 years and may
isolate Moscow through sanctions. Smigiel thinks that Poland will manage be reviewed after 10 years. In addition,
India, which imports 80% of its oil needs, well without Russian LPG by utilising more Budapest wants to increase gas deliveries
usually buys only about 2-3% from Russia. of its LPG terminals in Gdansk, Gdynia, through Serbia by 1 bcm per year, and this
But with oil prices up 40% so far this year, and Szczecin, Poland’s main seaports. issue was brought up by Orban during his
the government is looking at increasing its The cost of importing LPG from other visit to Moscow in early February but no
supplies from Russia. countries will likely be higher by $30-$40 agreement was reached.
"Russia is offering oil and other per tonne, which is not an economic- The government’s position is
commodities at a heavy discount. We will defying increase, Gaspol’s CEO also said. that Hungary condemns Russia’s actions in
be happy to take that," one of the Indian Ukraine and provides assistance to refugees,
government officials told Reuters. but does not want to pay the price of the
Moreover, Indian officials are reportedly Hungary pleased that conflict in higher energy prices.
trying to set up a rupee-ruble mechanism Keeping energy prices is low is a key
with Russia to continue bilateral trade amid Russian gas and oil remain promise in Viktor Orban's re-election
sanctions on the Central Bank of Russia and campaign. He froze utility prices for retail
the capital controls that have ensued. exempt from EU sanction uses in 2013, which has helped him win two
supermajority victories since. Nevertheless,
taxpayers pay the price of state intervention.
Polish LPG supplier Gaspol list incur a €1.6bn deficit for selling gas and
State-utility giant MVM is expected to
Hungarian Prime Minister Viktor Orban
stops Russian purchases supported the EU’s plans to reduce electricity below market prices this year,
Julia Kiraly, chief economic advisor o the
dependency on Russian energy by 2027 at
Gaspol, a Polish supplier of liquefied the two-day informal meeting in Brussels. opposition alliance, told bne IntelliNews.
petroleum gas (LPG), used in cars and EU leaders have abandoned plans to levy "EU leaders listened to the French
households that are not connected to the sanctions on Russian gas and oil, a relief for president and German chancellor who had
gas grid, has stopped purchasing Russian- Hungary, which is dependent on Russian talks with Putin. It cannot be ruled out that
made LPG in reaction to Russia’s military energy. the conflict will drag on. We have decided
aggression against Ukraine, the company Before the meeting, Hungary's that Europe will also join ceasefire talks",
said on March 14. premier made it clear it would not support Orban said.
Gaspol joins a long list of companies that sanctions extended to the energy sector.
have withdrawn from Russia or otherwise European Commission President has
limited their involvement with the Russian set a new target date for the EU to scale
market by means of boycotting Russian back the use of Russian energy. Speaking
products or halting investment plans. at the informal summit of heads of state
“In the face of Russia's military and government in Versailles, Commission

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