BAKU, Azerbaijan, May 7. Hungary is very
interested in heightening its economic relationship with
Azerbaijan, President of Hungarian Institute of International
Affairs Gladden Pappin told Trend in an exclusive interview.
Pappin noted that there is very close cooperation between
Hungary and Azerbaijan, which escalated to the level of an enhanced
strategic partnership in 2023. This relationship goes much deeper
for Hungarians. Hungary, as a member of the EU, has a deep cultural
heritage in Central Asia. Since 2018, Hungary has been an observer
member of the Turkic Council and the Organization of Turkic States.
It feels a very deep cultural connection with Azerbaijan and the
other members of the Organization of Turkic States.
“Hungary’s cultural and historical connections to the region
make it very interested in heightening its economic relationship
with Azerbaijan. There are a number of important Hungarian
companies that operate in the country. There’s a significant annual
trade turnover, and there have been a number of mutual initiatives,
particularly related to energy, in the last few years,” he
said.
Pappin mentioned that both countries occupy important spots on
the transit routes between East and West, and as a result, they
share similarities in this sector too. They both serve as a kind of
gateway between the West and the East, and in recent decades, they
have fought hard for and restored their national sovereignty. So
they share a similar spirit, experience, and positioning in the
contemporary geopolitical environment. For all of these reasons,
the relationship has become very strong.
Talking about transportation links between Europe and China,
Pappin noted that the capacity of the Middle Corridor has increased
significantly in the last couple of years.
“The Middle Corridor runs straight to and through Hungary.
Therefore, Hungary is at the western end of this route, connecting
it to China. The connection between Hungary and China is very
strong. There are a number of Chinese industries that operate in
Hungary, and those are growing and becoming more significant. A
significant portion of Hungary’s imports come from China and play a
role in Hungary’s manufacturing process. So, for that reason, the
increased capacity of the Middle Corridor is extremely important,”
he said.
Furthermore, he observed a dramatic acceleration in Hungary’s
desire to acquire energy from Azerbaijan over the last few years.
That has led to a number of proposed infrastructure and
transportation projects between Hungary and Azerbaijan, including
an undersea electric cable that will transport green energy to
Hungary.
“But the logistical projects are quite complex and will involve
a lot of different partners over the next few years to fully come
into existence. Minister Peter Siyarto pointed out that Hungary’s
goal is to have up to 10 percent of its energy needs supplied by
Azerbaijan in the not-too-distant future. It is a goal;
nevertheless, the agreement last year to realize the initial
transportation and shipment of energy and natural gas to Hungary
has already begun to be realized,” he said.
Speaking about green energy, Pappin noted that Hungary has been
undertaking elements of its own green transition in the last few
years in a moderate way that will primarily respect the energy
needs of Hungarian households. So it doesn’t want to undertake that
transition in a way that would be disruptive to them. In general,
Hungary aims to serve as a major transit hub for goods, energy
products, and green energy projects between Azerbaijan and the
European Union.
“The fact that the COP29 conference will be held in Azerbaijan,
as an oil-producing country, is a sign that the old contrast
between traditional fossil fuel extraction and green energy
production is somehow changing, and that it’s possible to pursue
and support elements of the green transition and aim to, as much as
possible, have a clean economy while not abandoning the traditional
sources of energy extraction,” he said.
The Institute for Development and Diplomacy (IDD) organized
Pappin’s lecture at ADA University. He delved into Hungary’s
perception of the evolving global landscape, highlighting its
distinct viewpoint as a nation within the EU, situated at the
crossroads of the West and the East.
“Hungary is very attuned to the need for maintaining an open and
cooperative world economy, especially within Europe. This entails
economic cooperation not only with the US but also with China and
as many other partners as possible,” he said.