Hungary ramps up strategic ties with Azerbaijan, eyes energy, industrial expansion

Hungary has significantly benefited from its long-standing cooperation with Azerbaijan, leading to major developments across key sectors such as energy, pharmaceuticals, agriculture, and construction, Hungarian Minister of Foreign Affairs and Trade Péter Szijjártó announced following the Hungarian-Azerbaijanii Joint Economic Commission meeting in Budapest.

“Energy cooperation with Azerbaijan has enabled Hungary to become an energy-producing country even without oil and gas fields,” Szijjártó stated, Caliber.Az reports via local media.

He emphasized the pivotal role Azerbaijani partnerships have played in bolstering Hungary’s energy independence and industrial expansion.

The minister noted that Hungarian oil and gas giant MOL and the state-owned MVM Group have acquired stakes in some of the world’s most significant natural gas and oil fields in Azerbaijan. These acquisitions have positioned Hungary as an active player in international energy markets.

Szijjártó revealed that in the previous year, approximately 15% of MOL's total hydrocarbon production was connected to Azerbaijan, amounting to around 5 million barrels of crude oil, while MVM had extracted 382 million cubic metres of gas from another major hydrocarbon field within a span of four months.

He further disclosed that MOL is on the brink of securing a new agreement that would elevate the company from a part-owner to the operator of a major Azerbaijani oil field. “An agreement has been reached that, in addition to crude oil production, natural gas production will also start with MOL's participation in one of the world's most significant hydrocarbon fields from next year,” he added.

On the pharmaceutical front, Szijjártó explained that Hungarian companies have thus far operated solely as sellers in the Azerbaijani market. However, under a recent investment agreement, two leading domestic firms will soon act as contract manufacturers, opening up greater market opportunities.

Szijjártó also highlighted growing industrial cooperation beyond energy and pharmaceuticals. “Soft drink maker Hell Energy will soon start building a plant in Azerbaijan,” he announced, marking a notable expansion of Hungarian manufacturing interests in the region.

Reflecting on the 15-year bilateral relationship, Szijjártó underlined Hungary’s consistency in building a partnership based on “mutual respect and mutual benefits.”

“We have been building cooperation with Azerbaijan based on mutual respect and mutual benefits for fifteen years, not just yesterday, for which we were initially laughed at and lectured by those Europeans who today are lining up in Baku to take photos with the Azerbaijani president,” the minister said.

According to Szijjártó, there are no outstanding political issues between Budapest and Baku, paving the way for deeper economic integration. “Everything is in place for the further development of Hungarian-Azerbaijani economic relations,” he concluded.

By Vafa Guliyeva