Economy
Brussels wants clarification from Hungary on South Stream plans
Ever since Hungary’s Prime Minister Viktor Orbán sat to the negotiating table with Alexei Miller, the Chief Executive of Russia’s Gazprom, the number of Hungarian steps putting the Russian gas giant in an advantageous position and supporting Russian interests have oddly increased. First Hungary shut down reverse gas flow to Ukraine then it allowed Gazprom to stash its gas in local gas storage units.
The latest measure is a law amendment proposal submitted by Parliament’s economic committee chaired by Fidesz caucus chief Antal Rogán that would give Hungary the green-light to start building the South Stream pipeline - despite all reservations and obstructions by the European Union.
“The European Commission is in contact with Hungarian authorities in order to seek for further clarifications on this," EC spokeswoman Anna-Kaisa Itkonen told a daily press briefing on Tuesday.
It is the EC’s understanding that a planned amendment of the law is proposed in the context of ensuring the building of the South Stream pipeline, she added.
“Separate authorisation procedures for building and operating of pipelines is as such not contrary to the provisions of the EU Gas Directive. Importantly, however, to emphasise that such authorisations have to be based on objective and non-discriminative criteria which are published and made transparent," Itkonen said.
She also noted that from the amendment “it is unclear, according to what criteria such authorisation to build pipelines could be granted by the Hungarian national regulatory authority."
She stressed, however, that “in any event it is crucial that in granting a licence to an undertaking to build a pipeline, which normally takes place after commitments have been made to book a capacity therein, the strict provisions of the directive for operating a pipeline are not prejudiced as well any public procurement rules."
As the document submitted to Parliament says, the amendment would facilitate any gas company to construct the pipeline that is not a certified transmission system operator, i.e. it would not have to comply with any rules under which TSOs must operate.
The latest measure is a law amendment proposal submitted by Parliament’s economic committee chaired by Fidesz caucus chief Antal Rogán that would give Hungary the green-light to start building the South Stream pipeline - despite all reservations and obstructions by the European Union.
“The European Commission is in contact with Hungarian authorities in order to seek for further clarifications on this," EC spokeswoman Anna-Kaisa Itkonen told a daily press briefing on Tuesday.
It is the EC’s understanding that a planned amendment of the law is proposed in the context of ensuring the building of the South Stream pipeline, she added.
“Separate authorisation procedures for building and operating of pipelines is as such not contrary to the provisions of the EU Gas Directive. Importantly, however, to emphasise that such authorisations have to be based on objective and non-discriminative criteria which are published and made transparent," Itkonen said.
She also noted that from the amendment “it is unclear, according to what criteria such authorisation to build pipelines could be granted by the Hungarian national regulatory authority."
She stressed, however, that “in any event it is crucial that in granting a licence to an undertaking to build a pipeline, which normally takes place after commitments have been made to book a capacity therein, the strict provisions of the directive for operating a pipeline are not prejudiced as well any public procurement rules."
As the document submitted to Parliament says, the amendment would facilitate any gas company to construct the pipeline that is not a certified transmission system operator, i.e. it would not have to comply with any rules under which TSOs must operate.
