The Hungarian government, which won the right to an exemption from the EU embargo on Russian oil, recently introduced an unexpected 25% tax on the difference between Russian crude and world prices. A note from the Eurointelligence research agency estimated that this could bring Budapest about $ 600 million (49 495 million 57 575 million) in “hidden profit” per year, noting that “it was not bad money for an economy of this size”. Hungary was one of three Mediterranean countries, including Slovakia and the Czech Republic, to be granted an indefinite exemption from the EU ban on Russian oil imports. After a month of controversy over its latest sanctions on Russia, EU leaders have agreed on an oil embargo that will cover 90% of Russian imports by the end of the year. They promised to reach an agreement on completing the embargo “as soon as possible” without setting dates. Eurointelligence analysis shows that Hungarian Prime Minister Viktor Orban has little incentive to join the EU ban on Russian oil imports. “For Orban, maintaining imports from pipelines, but the embargo on everything else is the best of both worlds,” the agency wrote. “His government can benefit from both higher oil prices and continued shipments of Russian crude, earning a share of the revenue at the expense of everyone else in the EU. What reason could it have to back down?” Jack Smith, an analyst at Eurointelligence, said that based on an “admittedly high assumption” about the world price of Brent crude oil, Hungary could raise $ 600 million a year, which he said could cover its growing budget deficit. . Hungary introduced unexpected taxes on energy companies and airlines this month after public finances plummeted after a pre-election spending spree. The government reported a $ 7.2 billion budget deficit for January-April, according to Reuters, following tax cuts and pension increases before the election in which Orban returned to office for a fourth consecutive term. EU officials have expressed optimism that an agreement on completing the EU oil embargo could be reached soon. Orban, however, took a different note, telling Hungarian radio last week that ending the exemption “will not happen quickly and will cost a huge amount of money”. In a typical inflammatory statement, Orban accused the EU and international philanthropist George Soros of “extending” Russia’s war with Ukraine. Hungarian-born billionaire Soros is the long-term goal of a state-funded campaign full of anti-Semitic conspiracy theories. Orban’s last remarks were in line with this unsubstantiated rhetoric: “It is now quite clear that there are business circles interested in the war and symbolized by George Soros.” The Hungarian government’s international communications bureau did not immediately respond to a question about whether the government had agreed to the estimated $ 600 million in revenue. He said oil producers would pay a 25% unexpected tax for the 2022 and 2023 tax years. originating in the Russian Federation purchased during that month. “
