Reuters: Hungary says South Stream pipeline only way to ensure gas supply
Hungary aims to start building its stretch of the Russian-backed South Stream gas pipeline next year despite European and U.S. opposition as it sees the project as the only way to ensure supply, a senior government official told Reuters.
Brussels and Washington say the $40 billion (25.52 billion pounds) pipeline will entrench the Kremlin's energy stranglehold on eastern Europe and they see Budapest's support as a sign Hungary is drifting into Russia's orbit.
But Budapest says the collapse of the rival Western-backed Nabucco project to bring gas from Azerbaijan to Europe, and stalled plans to build inter-connector pipelines within eastern Europe, have left it with no alternative.
"Nabucco will not be built and after nearly 10 years of hesitation, and especially in light of the Ukraine situation, we need to act. This is a necessity," Andras Aradszki, energy affairs state secretary said in an interview on Wednesday.