Hungary: Gov changes to push South Stream together with Gazprom and OMV

27. October 2014. / SEE Energy News

Hungary plans to change legislation in order to allow the acceleration of South Stream project, together with the Russian Gazprom and Austrian OMV “push.In order to accelerate the project Hungary will bypass compliance with the EU by changing the law.

The Chairman of the Board of the Hungarian Parliament, Antal Rogan, proposed amendments to the law that would allow the work initiation on gas pipeline in that country.

Hungary in this way goes over the confrontation course with the EU, as the European Commission blocked the South Stream, because it allegedly violates the rules of the Union.

According to the amended law, all companies in Hungary can participate in the pipeline construction without having previously obtained certificate from the transmission system operator (TSO).

Under EU rules, however, only TSO is entitled to manage construction and pipeline, which should first obtain international approval.

The new law stipulates that the Hungarian energy institutions should accept the construction of such projects.

Austrian oil company OMV agreed the construction of the South Stream pipeline through Austria with the Russians in June. One branch of the pipeline will go across Bulgaria, Serbia and Hungary and will end in Baumgartner hub in Austria.

Sanctions against Russia delayed the construction and some foreign banks have temporarily put ‘on ice’ plans for financing.

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