Hungary hardens position on Bulgaria's Schengen bid as Budapest charges extra tax for Russian gas

By Sibel Morrow

Hungary hardened its stance after the EU member country came under fire following its objections to Bulgaria’s Schengen bid in response to additional taxes Bulgaria levied on Russian gas.

As part of a series of sanctions imposed on Russia after its attacks on Ukraine in February 2022, Bulgaria had been levying an additional tax of 20 lev (€10) per cubic meter on Russian gas passing through Hungary's borders via the TurkStream pipeline.

Hungary has been receiving 4.5 billion cubic meters per year of Russian natural gas as per an agreement inked in 2021 for delivery through Serbia and Bulgaria.

In an interview with French broadcaster LCI, Hungarian Foreign Affairs Minister Peter Szijjarto said Hungary and Russia have "very rational cooperation on energy," given the importance of energy security for the landlocked country.

The Hungarian foreign minister’s remarks came after he warned EU countries on Saturday that Hungary would veto Bulgaria’s bid to enter Europe’s border-free Schengen area unless Sofia removes a transit levy on Russian gas.

"If gas flows from Russia towards Hungary were interrupted, it would be physically impossible to guarantee Hungary's energy supply," Szijjarto said.

"No one could expect Hungary to render its own energy security impossible," he added.

"Bulgaria’s decision, which is completely contrary to European legislation, risks stopping gas supplies, including to Hungary," Szijjarto was quoted as saying in a recent Hungarian government spokesperson's social media post.