
© Laszlo Balogh / ReutersRussian President Vladimir Putin and Hungarian Prime Minister Viktor Orban
Vladimir Putin is paying a return visit to Budapest, a year after Viktor Orban's trip to Moscow set the tone for enhanced bilateral cooperation.
The two leaders, similarly unpopular in Brussels, are set to discuss current and prospective mutually lucrative trade deals.The visit comes during tense times between the EU and Russia, which is facing an ongoing sanction regime coupled with an unprecedented NATO troop buildup on its borders. The global geopolitical situation is, according to Hungarian Foreign Minister Peter Szijjarto, however, way more favorable than during Putin's previous visit to the country in 2015.
Putin's first official trip in 2017 is set to bolster bilateral agreements reached during Orban's February 2016 visit to Moscow. The two leaders are expected to focus on joint economic and trade projects,
according to Kremlin.
Putin and Orban will also
likely discuss cooperation within the frameworks of the Nord Stream and Turkish stream gas pipeline projects, Russia's presidential aide, Yuri Ushakov told reporters on Wednesday.
About 85 percent of Hungary's gas flows in from Russia. In 2015, Putin and Orban signed a new gas agreement replacing a 20-year contract that had expired in December 2015. Hungary pays only for gas it actually consumes under the agreement, which proved to be very lucrative for low-demand consumers.
Another key issue, which is expected to be discussed during the visit is the expansion of the Paks nuclear power plant. Russia and Hungary signed an agreement on the construction of two additional reactors in January 2014. Eighty percent of the project's cost will be funded by a €10bn credit line from Russia, and work will be performed by Russian nuclear scientists. Budapest is currently awaiting approval of the project by EU bureaucrats who have been blocking it.
Comment: Could this move away from the dollar be the real reason for increasing US rhetoric on Iran rather than the missile launch?