RUSSIA: Russian and Hungarian leaders meet for talks in Moscow that are expected to focus on energy ties

Russia rolled out red carpet for Hungarian Prime Minister Ferenc Gyurcsany on Thursday (March 22) in a clear show that its relations with ex-Soviet allies in Central Europe can be problem-free and rewarding. President Vladimir Putin hosted Gyursany for talks at his official resident near Moscow. The two leaders met amid Moscow's bitter row with Poland, which has retaliated for Russian food import ban by blocking its talks with the European Union on a new partnership agreement. Against that backdrop, good ties with Hungary are seen in Russia as a positive example which deserves to be encouraged. "Our relations in the energy sphere are developing well; I remember you had some complaints with oil delivery, but now this has been resolved. In the gas sector there are no problems, and we have big plans in the energy field," said Putin in his opening remarks at the start of talks with Gyursany. The Hungarian leader was also upbeat in his assessment of ties with Russia. "I see a very positive turn in the relation between our countries in the last five years. I am glad that you are not concerned that our trade balance is in favour of Hungary at present," said Gyursany. Hungary depends on Russia for 80 percent of its natural gas and is considering Blue Stream, a 6 billion U.S. dollar (USD) pipeline backed by Russian energy giant Gazprom, and Nabucco, an EU-backed scheme aimed at breaking Russia's stranglehold on supplies. The election of a right-of-centre government in Poland has caused deteriorating relations with Russia and the missile shield, which Poland and the Czech Republic have signed up for, is regarded by Russia as a security threat. Energy giant Gazprom bought into Hungary's strategic gas storage and transport business, and Russian businessmen into the former state airline, Malev. Hungary's right wing Fidesz opposition, which is close to the Polish government, is concerned about Russia's growing influence in their country which it ruled by force for 40 years.

ITN Source | March 23, 2007

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