Russia turns to Hungary and Turkey to avoid isolation

By Ovunc Kutlu

ANKARA

Russia seems to have turned to Hungary and Turkey to prevent isolation amid unrest in Ukraine. 

"Russia does not want to seem isolated, and has turned to Turkey and Hungary," Liza Ermolenko, an economist at London-based research consultancy Capital Economics, told The Anadolu Agency.

"It is important for Putin now to strengthen friendship with as many countries as possible," she said, noting that, in past months, Russia’s relationship with Europe and the U.S. had deteriorated as Moscow is accused of supporting rebels in eastern Ukraine -- a claim Russia denies.

"The bigger picture is that Russia appears to be working hard on its international image against the backdrop of the conflict with the West," she explained.

Russian President Vladimir Putin scrapped the South Stream gas pipeline project on Dec. 1, which would have carried Russian natural gas via Bulgaria to southern and central Europe. Instead, he proposed a new pipeline route through Turkey, which is now referred to as the Turkish Stream.

After talks with Hungarian Prime Minister Viktor Orban in Budapest, Putin signaled Tuesday that Russia could discuss other gas options with Europe, leaving the door open for future cooperation with the EU. 

Moreover, Orban said Friday -- in an interview with Russian newspaper Kommersant -- that he and Putin would work together on obtaining the EU’s consent for the Turkish Stream, reported the Russian news agency Itar-Tass. 

"It is very likely (…) that Hungary is going to join the Turkish Stream," she highlighted. "If that happens, Hungary is likely to be a net beneficiary via investments in the infrastructure." 

"It seems likely that Russia will be happy to put together a good deal for Hungary," said Ermolenko noting that Russia needed friends in the current environment.

The two countries agreed during Putin's visit that Hungary would only pay Moscow for the amount of natural gas it consumed, instead of an agreed-upon volume in a contract. 

Under the new agreement, which has not yet been signed, the Hungarian government is expected to save more than $3 billion in total while the country depends on Russia for around 65 percent of its natural gas consumption.