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PM Orbán: Hungary’s GDP would shrink 4 percent without Russian energy

If Hungary were to suspend purchases of Russian gas and oil, the economy would immediately contract by 4 percent, leaving hundreds of thousands of families in financial ruin, Prime Minister Viktor Orbán warned on Friday during his regular interview.

PM Orbán stressed that such a step would cause both supply shortages and skyrocketing prices, forcing households to pay hundreds of thousands of forints more for energy. He pointed out that Hungary, lacking a seacoast, is entirely dependent on pipelines for its energy imports. At present, the country can only be supplied through infrastructure built in the communist era and expanded over the past decade to the south.

The prime minister said he had also raised the issue with the U.S. president, citing a recent International Monetary Fund (IMF) report. According to the IMF, cutting Hungary off from Russian oil and gas would cause the country’s economic output to fall “within a minute” by 4 percent.

“That would be a catastrophe. It would mean the Hungarian economy collapsing to its knees,” PM Orbán said.

Asked whether the American president accepted his arguments, PM Orbán responded that Hungary and the United States are both sovereign nations, with different interests and perspectives.

“America has its arguments and interests, Hungary has its own. Our task is to express and represent them clearly. If we are friends, we listen to each other — and then everyone does what they think is right,” he added.