Putin’s minister comes to Budapest, does Hungary want to borrow money from Central Asian states?

Putin’s minister responsible for healthcare issues will meet with Foreign Minister Péter Szijjártó today in Budapest. Reuters was surprised to hear about the visit since Western visits of Russian ministers are a rarity after the Russian invasion of Ukraine. Meanwhile, Finance Minister Mihály Varga hosted the President of the Turkic Investment Fund in Budapest. Will Hungary borrow more money from Eastern states?

Odd move: Putin’s minister in Budapest

According to portfolio.hu, Russian healthcare minister Mikhail Murashko will arrive in Budapest today to conduct negotiations with Foreign Minister Péter Szijjártó. This is not the first time he has visited Hungary after the beginning of the Russian invasion of Ukraine. Mr Murashko was here in July 2023 as the first member of the Russian government to pay an official visit to a NATO member.

Then, Péter Szijjártó said that Hungary would maintain relationships with Russia because that is the national interest. Szijjártó added that Russia was a trustworthy gas deliverer and Hungary needed Moscow for the country’s energy safety.

Reuters, reporting about the second Murashko visit, highlighted it was unfamiliar that one of Putin’s ministers visits an EU or NATO member state. Based on the relevant statement, Szijjártó and Murashko will talk at a Russian-Hungarian business forum today in Budapest. However, they did not share any further details.

UPDATE: Europe does business with Russians in secret, FM Szijjártó wrote

The Russia-Hungary Economic Cooperation Committee already started its session in Budapest. Szijjártó shared a post on his official Facebook page writing that 78 companies participate in the forum and they would continue to develop Russian-Hungarian cooperation in all areas not affected by the Brussels sanctions. He added that the entire Europe did business with Russia, but they tried to keep it secret.

 

Will a new Eastern loan rescue Hungary’s economy?

Finance Minister Mihály Varga met with Baghdad Amreyev, the president of the Turkic Investment Fund, in his office in Budapest on Thursday, his ministry said. After the meeting, Varga noted that Hungary had broken with unilateral economic policy 15 years earlier when it announced its Eastern Opening policy. Hungary’s policy of economic neutrality has made it an “outstanding” exporter, relative to its size, while it boasts a high investment rate and a competitive tax system, he added.

He said Hungary’s ties with the Organisation of Turkic States (OTS) were growing stronger, adding that bilateral trade with OTS members now exceeded USD 5bn. Those strong ties can be developed further in the areas of energy, water management, farming and education, he added.

Chinese loan to be spent on modernisation

Hungary quietly took out a EUR 1 billion loan from China in July. Later, it became clear that the Orbán cabinet would like to spend that money on the installation of electric vehicle charging stations in rural areas. The Hungarian government regularly states that they would not take sides in the escalating East-West conflict despite our NATO and EU membership. Instead, they would like to be a bridge connecting the two camps. Since Hungary struggles to get EU funds due to rule-of-law concerns and infringement procedures, the budget needs other sources to back investments. Because of the falling consumption, the budget balance broke this year, so the Orbán cabinet is happy to receive any alternative financial help to fill the budgetary holes. And the EU recovery and most of the development funds are still out of reach.

Read also:

• Hungary targets foreign retailers: Government aims to curb Temu’s market domination – read more HERE
• Orbán against the EU? Hungarian PM: economic neutrality is in Hungary’s interest, not the blocs – more details HERE

Featured image: the Orbán-Putin summit, an episode of Orbán’s so-called ‘peace mission’ at the beginning of Hungary’s EU presidency, in July in Moscow.