Hungary reveals cost of sanctions on Russia

Budapest will be forced to cut social spending due to budget shortages stemming from EU restrictions, PM Viktor Orban says

The Hungarian economy is losing billions of dollars due to Western sanctions on Russia, Prime Minister Viktor Orban said on Friday.

“The policy of sanctions,” which has led to a drastic surge in energy prices across the EU, will cost his country’s economy $10 billion a year, he stated.

Orban explained that the pressure on the Hungarian budget will result in cuts to social spending, adding that from this perspective, Hungary’s stance against the sanctions “doesn’t seem to be excessive.”

Earlier this week, speaking with local media, he said that “the policy of sanctions is a way to war,” and stressed that the main goal for Budapest is to avoid a Europe-wide recession.

The Hungarian leader is a vocal critic of the EU’s approach towards the conflict in Ukraine, and has repeatedly said that the sanctions imposed on Moscow are hurting the EU more than they hurt Russia.

READ MORE: Some EU states edging toward recession – Bloomberg

Hungary’s economy heavily relies on Russian energy, and the government has resisted EU plans to completely ban oil and gas imports from the country. After tense negotiations, Budapest received several exemptions from the bloc-wide restrictions on purchases of Russian fossil fuels.

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