Budapest does South Stream sums

Doing a deal: Hungary's Prime Minister Gyurcsany will sign the South Stream deal in Moscow today

Hungary will pay for its share of the costs of the South Stream gas pipeline project through the Hungarian Development Bank MFB, without burdening the state budget, a Finance Ministry spokesman said today.

Prime Minister Ferenc Gyurcsany is expected to officially sign up for Gazprom's €10 billion ($15.1 billion) project today in Moscow.

"(State-owned) MFB will use financing from international markets," the spokesman, Ferenc Pichler, told Reuters.

It would be too early to project whether MFB will issue bonds or takes up loans, he said, adding that the ministry estimated Hungary's contribution to the South Strem project at about €700 million.

The pipeline will reach Hungary through Serbia where construction is expected to start by 2012.


Become an Upstream member!

Membership includes a subscription to our weekly newspaper providing in-depth news from the energy industry, plus full-access to this site and its archives. Still not convinced? Try our free trial.

Already a member?