Russia strikes 15-year gas supply deal with Hungary

Russia has struck a 15-year deal to supply gas to Hungary, Hungarian foreign minister Peter Szijarto said on June 3 after talks in St Petersburg.

Szijjarto was in Russia to speak at the St Petersburg International Economic Forum, one of Russia's largest business events. He also met with the CEO of Russia's natural gas giant Gazprom.

The new contract will come into force when Hungary's existing agreement for Russian supplies expires in September, Szijjarto said. He did not divulge details on volumes and prices, but said the pricing would be "flexible."

Hungary imports most of its Russian gas via Ukraine but is also set to start receiving supplies via Russia's TurkStream pipeline later this year. Szijjarto noted that a connection point at Hungary's border with Serbia to import this gas would be up and running by October.

While Russian gas will remain Hungary's mainstay, its state-owned power company MVM signed a six-year contract with Shell in September last year to receive gas from the Krk LNG import terminal.