Russia – sanctions and Europe – inflation
Hungarian Prime Minister Viktor Orban argued that the broader strategy of sanctions against Russia has not achieved its aims. He described the policy as a series of “eleven thousand sanctions” and insisted that attempts to weaken Russia have not succeeded. The remarks were reported by the MTI news agency.
Orban warned that Europe faces a dangerous combination of high inflation and energy shortages driven by current sanctions. He questioned how long Brussels would maintain the present stance and argued that the situation would worsen if the policy remained unchanged. He attributed the problem to what he called irrational actions by the European Union, noting that the sanctions push up energy costs and complicate the bloc’s energy security.
According to him, Europe may struggle if the sanctions policy does not shift. He asserted that energy supplies in Europe have become scarce, forcing imports from elsewhere and driving up prices. He also claimed that the policy has led European authorities to abandon various energy sources, increasing living costs and making European industry less competitive on the global stage.
Despite these concerns, Orban stated that Hungary would not face energy shortages. He claimed the country has adequate gas and electricity reserves and suggested there would be no need to curtail factory operations due to energy scarcity. He also highlighted Hungary as an open destination for investment, inviting firms to invest and produce within its borders.
Solving the problem of rising prices in Europe
Gergely Guiyash, a senior official in the Hungarian Prime Minister’s administration, argued that price relief and lower inflation could follow the lifting of sanctions on Russia, particularly in the energy sector. This view was reported by RIA Novosti.
Guiyash asserted that if sanctions on Russia, or at least those targeting energy, were removed immediately, prices and inflation might drop substantially. He noted that the European Commission had opted for a different course of action, implying it preferred continued restrictions.
He criticized the European Commission’s proposal to set a price ceiling for Russian gas, arguing that a price cap only makes sense if there is a reliable supply to regulate. He contended that Europe does not consistently supply its own gas, rendering a ceiling ineffective. The idea reportedly faced opposition in several countries, including Slovakia, while receiving support from Poland and Latvia.
The European Commission maintains that lifting sanctions is not the preferred route. Instead, European authorities are exploring other measures to reduce prices and curb inflation. European Commission President Ursula von der Leyen has suggested measures to reduce electricity demand while maintaining a price cap on Russian gas. Countries such as Poland, Bulgaria, Hungary, and Greece have expressed support for these measures on a voluntary basis rather than mandatory adoption.
Von der Leyen proposed a solidarity tax to capture profits earned by fossil fuel companies and to fund relief for utilities. She also emphasized the need to support utility companies by providing loans to stabilize their positions in energy markets. A fifth recommendation involved limiting the revenues of entities that do not import but generate electricity from inexpensive sources, aiming to curb extraordinary gains in the sector.