Hungary Wins EU Exemption to Let Russian Firm Service Metro Cars
The European Union plans to grant Hungary an exemption in its latest package of sanctions on Russia to allow imports of goods and services necessary for the operation of the Budapest metro, according to Bloomberg.
The sanctions, which were supported by member states, include exemptions for certain items such as safety glass, specific types of machinery, valves, and related technical assistance, as outlined in documents seen by Bloomberg. These parts are required for the functioning of the subway cars on Budapest's metro line 3, as indicated in one of the documents. The metro cars are serviced by the Russian company Metrowagonmash, which builds and maintains subway trains. Metrowagonmash had refurbished the aging rolling stock of the line in 2017, but a quarter of them were reported to be out of service earlier this year due to quality issues. The Russian company was previously sanctioned by the United States.
Other exempted goods include telephone sets, signaling apparatus like bells and indicator panels, as well as subway and tram coaches. In total, imports or transfers of goods falling under 14 tariff codes can be authorized for Hungary.
Hungarian Prime Minister Viktor Orban has been a vocal critic of EU sanctions against Russia and has maintained close economic ties with Moscow since the invasion of Ukraine. However, he has supported all of the bloc's trade restrictions on Russia while regularly extracting concessions, including the right to continue purchasing Russian oil through Ukraine. Hungary was among the last member states to offer its support for the latest sanctions package, which includes a ban on the transit of many goods through Russia to third countries, along with new tools and provisions to crack down on sanctions circumvention.
As previously reported by The Gaze, the governments of the European Union agreed on the 11th package of sanctions against Russia for its invasion of Ukraine, aimed at preventing other countries and companies from circumventing existing measures. Hungary and Greece delayed the adoption of the sanctions package due to Ukraine including some of their companies on the list of war sponsors. According to Reuters, Ukraine removed five Greek shipping companies from the list of war sponsors after securing Athens' support. Hungary, on the other hand, supported the new sanctions despite its bank OTP remaining on Ukraine's list. However, Budapest stated that it would return to this issue later.
Also The Gaze reported, that according to a binding ruling by the Court of Justice of the European Union, the government in Budapest unlawfully hindered the possibility of applying for asylum in Hungary. The document states that by forcing migrants to apply at embassies located in third countries, Hungary failed to fulfill its obligations under EU law.