Hungarian CEO Soothes Romanian Politicians Over Potential Russian Gas Acquisition
The Hungarian energy company MVM is in talks to acquire 68% of the shares of the German E.ON Energie Romania, but facing resistance from the Romanian political elite. There are concerns that the Hungarians may bring Russian gas to the country, leading to dependency on Moscow. However, MVM CEO Károly Mátrai assures that local gas is the most cost-effective solution, and there is no need to import large amounts of Russian gas to Romania.
According to reports from Portfolio, MVM’s acquisition of E.ON’s Romanian subsidiary is contingent on obtaining all necessary permits and documents, a process that may face scrutiny due to fears of Russian involvement. Energy Minister Sebastian Burduja has vowed to thoroughly review the transaction and block it if any suspicious activities are uncovered, although he emphasized that critical infrastructure would not be affected.
MVM is eager to finalize the deal, having reportedly offered EUR 205 million for the majority stake in E.ON, a price significantly above market value. CEO Mátrai emphasizes that the company’s focus is on utilizing local gas sources, with no intention to transport Russian gas to Romania. He highlights the importance of utilizing local resources for cost-efficiency and sustainability.
Despite concerns from Romanian politicians about potential Russian gas supply, MVM aims to supply Romanian customers with local gas following the acquisition. The company plans to serve 40% of the gas market and 10% of the electricity market in Romania, without the need for Russian gas imports. Mátrai is optimistic about obtaining the necessary permits to complete the transaction by June-July.
In related news, Slovakia’s gas supply relies on Hungary as the only route for purchasing Russian gas through TurkStream. The SPP is looking to increase its gas volume and explore alternative buying routes to ensure stable supply. With valid contracts with Gazprom, Slovak leaders are considering diversifying their sources through German and Czech routes to meet their energy needs.
