MVM’s long-term strategy unaffected by scrapped South Stream plan

Budapest, December 2 (MTI) – Russia’s decision to scrap plans to build the South Stream pipeline will not affect the long-term strategy of the state-owned Hungarian Electricity Works (MVM), Gyorgy Harmati, the company’s strategy chief, said at a conference on Tuesday.

Harmati conceded that the pipeline would have supported the direct utilisation of Hungary’s gas storage facilities, noting that Gazprom already stores some of its gas in Hungary.

MVM is the equal partner in a joint venture with Russia’s Gazprom established to build the stretch of the pipeline that would have passed through Hungary.

The JV, called South Stream Hungary, had total assets of 3.9 billion forints at the end of 2013, public records show. But MVM decided to raise capital in the company by 5 billion forints in autumn of this year.