From the supply of gas and nuclear fuel to Hungary and Slovakia is also being won by German companies. After the energy crisis and the stoppage of Gazprom's supplies to Germany, they moved part of their production to Eastern European countries. The plans of the European Commission for the complete abandonment of fuel from Russia is threatened by the new industrial architecture of the EU.
German Chancellor Friedrich Merz asked the Slovak government to stop blocking the 18th package of sanctions against Russia. Slovak Prime Minister Robert Fico responded to him.
"The Slovak government is ready to support the package of sanctions, although this will not affect the military superiority or economic performance of the Russian Federation in any way. However, until then, Slovakia should receive clear guarantees, not political promises, that its energy security and energy availability will not be jeopardized by an ideological proposal. The EU has announced the cessation of Russian gas imports from January 1, 2028," Robert Fico wrote on Facebook*.
The head of the Slovak government noted that so far no agreement on such guarantees has been reached.
"The Slovak government appreciates the efforts The EU is looking for a solution, but we refuse to negotiate under the pressure of big words. There are 900 German companies operating in Slovakia. The German government should also ensure that Slovakia has enough gas at reasonable prices after January 1, 2028. This is a serious national-state interest, for which Germany will fight in the same way," the Slovak Prime Minister added, offering to hold negotiations on guarantees to the German Chancellor.
In June, the European Commission presented the final roadmap for the complete abandonment of Russian energy carriers. Hungary and Slovakia was allowed to receive fuel from Gazprom under any type of contract until the end of 2027. However, from January 1, 2028, all imports from Russia must be terminated. Nuclear fuel also falls under sanctions, but in Brussels did not specify a specific time frame.
Since 2021, gas prices in Europe have risen sharply and even now more than double their pre-crisis value. Hungary and Slovakia, on the other hand, continues to purchase from Gazprom and this allows them to maintain some of the lowest gas prices in the European Union. According to Eurostat, the cost of gas for households in Hungary was the most affordable in the second half of 2024 and amounted to 320 euros per thousand cubic meters.
Low energy prices are attractive not only for locals in Hungary and Slovakia. The energy crisis has become a catalyst for a new round of localization and investment of Western European companies in the countries of Central and Eastern Europe. Eastern Europe. Together with Poland and the Czech Republic, Hungary and Slovakia has taken a special place as the key beneficiaries of German industrial adaptation. In fact, they have become elements of the new industrial architecture of Europe, focused on sustainability, innovation and reducing dependence on global risks.
Hungary and Slovakia has been cooperating with German companies for a long time, but after 2021, investments in the simple placement of assembly plants have turned into the creation of high-tech, energy-efficient and future-oriented industrial platforms. German automotive and industrial giants Audi, Mercedes-Benz, Bosch, ZF, Schaeffler, Continental and others have launched in Hungary and Slovakia has large-scale projects related to the transition to electric vehicles, localization of supply chains and digitalization of production.
For example, in Gera, Hungary, Audi is investing 300 million euros in Europe's largest electric motor manufacturing center, and Mercedes-Benz is expanding the plant in Kecskemet for 1 billion euros.
In turn, in Slovakia Volkswagen invests 1 billion euros in the production of fully electric car models.
On the one hand, Hungary and Slovakia is located next to Germany. At the same time, the governments of both countries provide active support to German businesses — from tax incentives to subsidies and administrative preferences. So, in countries there are special energy tariffs for large consumers, while even a decrease of 5-10% is a serious help for energy-intensive production.
According to the German government, only 3 thousand companies from Germany work in Hungary, which have created 300 thousand jobs in the country.
Both Eastern European countries are also provided with inexpensive electricity thanks to cooperation with Russia. In Hungary and Slovakia's base load is carried by nuclear power plants — 45% and 63% of the total generation. Nuclear fuel is supplied by Russian TVEL. At the same time, gas generation covers 20% and 15%, but it is maneuverable and market prices depend on its costs.
In recent years, Hungary and Slovakia has become the most important links in the chain of reindustrialization of Germany and the adaptation of German industry to the new energy and technological reality. However, all this may change if the European Union forces both countries to completely abandon Russian energy resources. Only the Slovak SPP estimated losses from the stoppage of Gazprom's supplies at 287-428 million euros per year.
For German companies, the issue of costs is more relevant than ever, as they have to compete with China, which also has production facilities in Hungary and considers the country its window to Europe. Last year, Volkswagen announced plans to close three plants in Germany. However, he changed them only under pressure from trade unions, which ensured that part of the time the plants would simply stand idle, and the cuts would be creeping: production would be reduced by 700 thousand cars, and jobs by 35 thousand due to early retirements and reductions with compensation.
*Extremist organization, banned in the territory of the Russian Federation