Europe Will See War Economy by October If Brussels Doesn't Change Policies, Orban Warns
10:41 GMT 29.07.2022 (Updated: 17:15 GMT 12.04.2023)
© AP Photo / Virginia MayoEuropean Union flags flutter in the wind outside EU headquarters in Brussels, Saturday, Dec. 19, 2020
© AP Photo / Virginia Mayo
BUDAPEST (Sputnik) - If the European Union does not review its sanctions policies, a war economy may descend upon Europe as early as October, Hungarian Prime Minister Viktor Orban said on Friday.
"The strategy that we used as a foundation of our behavior has weakened, failed and [has become] nonexistent. If Brussels does not alter its strategy, we should expect a military economy across Europe in October... Sanctions and weapons deliveries are ineffective. You do not usually put out fires with flamethrowers," Orban told the Kossuth radio.
The prime minister noted that the revised strategy should focus on peace negotiations between Russia and the United States as the key financial sponsors of the conflict.
Orban also said that Hungary expects to purchase additional 700 million cubic meters of gas from Russia during the summer.
"We are negotiating with the Russians to buy additional 700 million cubic meters of gas. This agreement, in my opinion, we will be able to reach during the summer. And then we will be completely fine," Orban told the Kossuth radio broadcaster.
In late May, the Hungarian government declared a nationwide state of emergency in the energy sector, which consisted of a package of seven measures. These include increasing gas production from 1.5 billion cubic meters to 2 billion cubic meters, ensuring additional 700 million cubic meters of gas to fill storage facilities, banning the export of energy and firewood, increasing coal production, accelerating the restart of the Matra coal power plant units, extending the operation of the Paks nuclear power plant and cutting the preferential program of utility payments.
13 July 2022, 16:02 GMT
Since 2021, energy prices in Europe have been growing as part of a global trend. After the beginning of Russia's operation in Ukraine and the adoption of several packages of sanctions against Moscow in the West, inflation accelerated and fuel prices have been growing exponentially. On Wednesday, the prices reached $2,500 per 1,000 cubic meters after Gazprom announced its plans to reduce supplies via a key gas pipeline starting July 27 to no more than 33 million cubic meters per day, 20% of the pipeline's nominal capacity.
On February 24, Russia launched a military operation in Ukraine after the breakaway republics of Donetsk and Lugansk appealed for help in defending themselves against Ukrainian forces. In response, the West launched comprehensive sanctions against Russia and boosted military assistance for Ukraine, including lethal weapons. The EU has already approved seven packages of sanctions against Moscow and pledged to wean itself off Russian gas supplies.
The Western sanctions against Russia have resulted in major supply chain disruptions across the globe, affecting the agricultural exports, exacerbating inflation and pushing the world toward major food and energy crises.