Entries RSS Feed Share Send to Facebook Tweet This Accessible version

Government to buy Eon-gas with a view to gas talks with Russia

August 29th, 2012

A pro-government commentator dismisses a comment by Financial Times Deutschland which  brands the government’s endeavour to buy back the German owned main gas supply network as “madness, populism and a return to Goulash-Communism”.

Addressing a youth gathering last week, PM Viktor Orbán said “we will buy Eon momentarily.” The plan was explained by deputy PM Tibor Navracsics as part of the government’s strategy to transform public utilities into non-profit enterprises. Two years ago, the government acquired an option to buy Eon shares. Last year it made an offer, but the parties could not agree on the price. Talks are apparently underway and both sides have declined to comment either on Mr. Orbán’s statement or on the matter in general.

In Magyar Nemzet, Csaba Erdősi believes that the government”s intention is to buy the chain . The existing long term gas supply contract will expire in 2015 and talks on future conditions should start shortly. Erdősi argues that the present conditions, which fix the price of natural gas on the price of crude oil, are unfavorable for Hungary, as oil prices have soared out of all proportion to gas production costs. Much cheaper gas is available on the market. He thinks “a more favorable agreement should be concluded” and would feel safer if Hungary’s interests during the negotiations were represented by the government, rather than Eon-Ruhrgas.

Tags: , , ,