(MENAFN- Trend News Agency) BAKU, Azerbaijan, May 7. Hungary is veryinterested in heightening its economic relationship withAzerbaijan, President of Hungarian Institute of InternationalAffairs Gladden Pappin told Trend in an exclusive interview.
Pappin noted that there is very close cooperation betweenHungary and Azerbaijan, which escalated to the level of an enhancedstrategic partnership in 2023. This relationship goes much deeperfor Hungarians. Hungary, as a member of the EU, has a deep culturalheritage in Central Asia. Since 2018, Hungary has been an observermember of the Turkic Council and the Organization of Turkic States feels a very deep cultural connection with Azerbaijan and theother members of the Organization of Turkic States.
“Hungary's cultural and historical connections to the regionmake it very interested in heightening its economic relationshipwith Azerbaijan. There are a number of important Hungariancompanies that operate in the country. There's a significant annualtrade turnover, and there have been a number of mutual initiatives,particularly related to energy, in the last few years,” hesaid.
Pappin mentioned that both countries occupy important spots onthe transit routes between East and West, and as a result, theyshare similarities in this sector too. They both serve as a kind ofgateway between the West and the East, and in recent decades, theyhave fought hard for and restored their national sovereignty. Sothey share a similar spirit, experience, and positioning in thecontemporary 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 increasedsignificantly in the last couple of years.
"The Middle Corridor runs straight to and through Hungary, Hungary is at the western end of this route, connectingit to China. The connection between Hungary and China is verystrong. There are a number of Chinese industries that operate inHungary, and those are growing and becoming more significant. Asignificant portion of Hungary's imports come from China and play arole in Hungary's manufacturing process. So, for that reason, theincreased capacity of the Middle Corridor is extremely important,”he said.
Furthermore, he observed a dramatic acceleration in Hungary'sdesire to acquire energy from Azerbaijan over the last few years has led to a number of proposed infrastructure andtransportation projects between Hungary and Azerbaijan, includingan undersea electric cable that will transport green energy toHungary.
"But the logistical projects are quite complex and will involvea lot of different partners over the next few years to fully comeinto existence. Minister Peter Siyarto pointed out that Hungary'sgoal is to have up to 10 percent of its energy needs supplied byAzerbaijan in the not-too-distant future. It is a goal;nevertheless, the agreement last year to realize the initialtransportation and shipment of energy and natural gas to Hungaryhas already begun to be realized," he said.
Speaking about green energy, Pappin noted that Hungary has beenundertaking elements of its own green transition in the last fewyears in a moderate way that will primarily respect the energyneeds of Hungarian households. So it doesn't want to undertake thattransition in a way that would be disruptive to them. In general,Hungary aims to serve as a major transit hub for goods, energyproducts, and green energy projects between Azerbaijan and theEuropean Union.
"The fact that the COP29 conference will be held in Azerbaijan,as an oil-producing country, is a sign that the old contrastbetween traditional fossil fuel extraction and green energyproduction is somehow changing, and that it's possible to pursueand support elements of the green transition and aim to, as much aspossible, have a clean economy while not abandoning the traditionalsources of energy extraction," he said.
The Institute for Development and Diplomacy (IDD) organizedPappin's lecture at ADA University. He delved into Hungary'sperception of the evolving global landscape, highlighting itsdistinct viewpoint as a nation within the EU, situated at thecrossroads of the West and the East.
"Hungary is very attuned to the need for maintaining an open andcooperative world economy, especially within Europe. This entailseconomic cooperation not only with the US but also with China andas many other partners as possible," he said.
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