Orban Obtains a Reprieve on Russian Oil Sanctions.

Last week, during a meeting with President Trump, Hungarian Prime Minister Viktor Orbán successfully secured an exemption from sanctions regarding the purchase of Russian oil. According to a report in Sky News, Orban made the argument that, as Hungary is a landlocked country, the easiest method for them to get oil and natural gas is through the Turkstream and Druzhba pipelines, respectively. Despite the Trump administration instituting sanctions on two major Russian oil companies, Lukoil and Rosneft, it is no surprise that he was willing to help a fellow right-wing populist, Orban. Orban will also be grateful for this show of support because he is facing a fierce challenge in next year’s election in the form of upstart opposition candidate Peter Magyar. Finally, considering that Hungary is about to purchase U.S Liquefied Natural Gas (LNG) with the contracts being estimated at around $600 million, someone will surely “benefit” from this transaction.

Close Ally of Orban Sanctioned By The US.

Last Week, the U.S. government sanctioned Hungarian president Viktor Orban’s cabinet minister, Antal Rogan. According to a report in Politico, Rogan has allegedly used his office to enrich himself and other Orban allies. In particular, Rogan set up a procurement system that funneled lucrative government contracts to Rogan’s allies and Orban’s Fidesz Party in a broader sense. According to a report in the BBC, Rogan runs the Hungarian Intelligence Service, and NATO allies are loath to provide the Orban government with sensitive information for fear that it may end up in the hands of President Putin, with whom Orban has a close relationship. The sanctioning of Rogan will likely prove meaningless as the incoming Trump administration will rescind the order due to his close ties with Orban.

EU Takes Back €1 Billion From Hungary.

Last week, the EU stripped € 1.04 billion in aid from Hungary. The EU and Hungary have been at loggerheads over development money for several years. According to a report in Radio Free Europe, The EU believed that the Hungarian government had violated EU public procurement rules. This type of aid is critical for Hungary as the traditional economy as manufacturing has declined; the Orban government has relied on these payments to prop up the economy as well as to use for infrastructure such as football grounds or repaving roads (I can attest to the fact that they are very smooth). It will be fascinating to see how this plays out; Hungary needs the money, but unless Orban changes his leadership style (which is unlikely), I don’t see the EU changing its mind.

The Connection Between Orban and Football.

(Disclaimer: I spent a few days in Budapest last month: a lovely city).

There has long been a connection between football and Hungarian Prime Minister Viktor Orban. It has long been known that Orban loves the sport. According to an article on a website called Breaking The Lines, the Prime Minister would reportedly watch up to six matches a day(when does he find the time to run the country) and often attends the finals of the World Cup and UEFA Champions League (the biggest club competition in Europe). Orban was even included in the 2006 version of Football Manager (a well-known Football Management Simulator). Orban’s first connection to football came through his local village, Felscuit, where he supported his local club, Videoton FC.

In the 2010s, a massive stadium-building boom began in Hungary. In particular, a 4,000-seat stadium was built in 2014 in Felscuit (a village of 1,000 people) at the cost of 10 million Euros for Puskas Academy, the club that Orban founded in 2007. According to a report in the BBC, 2 billion pounds of government income were directed toward Hungarian football clubs for building stadiums and operating costs. Orban has actively encouraged Hungarian oligarchs to invest in football clubs as a form of tax relief and a way to be in his good books. Hungary has a curious practice whereby vast amounts of EU development funds meant for schools and hospitals get siphoned off to oligarchs or used for infrastructure projects that don’t seem strictly necessary (the motorways, for instance, are pristine). While all of this sounds admirable, Hungary is a country that is struggling economically, and spending 2 billion pounds of government income on building a new football stadium and not schools and hospitals doesn’t seem to be beneficial to the Hungarian people.

EU Approves Membership Talks with Ukraine.

Yesterday, the EU approved membership talks with Ukraine and Moldova. While this is undeniably a big step for Ukraine as a country, it is not certain that Ukraine will be accepted into the bloc. According to a report in The Guardian, Hungarian President Viktor Orban, a well-known ally of Russia and President Putin, is threatening to hold up the process in any way possible. It is entirely possible that Orban’s sole goal was to get the EU to release 10 billion Euros from the EU budget. Ukraine has a lot of work to do before it can be accepted into the bloc. According to an article in Reuters, Ukraine must continue to clean up its judicial system and hire more anti-corruption professionals. It will be a long road, but based on its recent track record, Ukraine is committed to joining the EU despite the ongoing conflict with Russia.

EU Gravy Train to be Halted in Budapest.

Recently, the European Union has threatened to cut off funds from its state budget to Hungary. Reportedly, the EU could withhold up to 7.5 billion Euros from the Hungarian government. If the EU does indeed take action, this could deliver a severe blow to an already struggling economy. According to the EU, this is being considered because the Hungarian government led by Viktor Orban has diverted EU funds to friendly oligarchs. Hungary is also accused of having inadequate anti-corruption laws. In response to this, the Hungarian government has stated that it will enact new anti-corruption legislation shortly.

It is widely acknowledged that Orban and his cronies engage in corrupt practices. Orban, like many other populist leaders, uses sport as a tool to shape their political vision, mainly to increase his domestic popularity and a way to boost his ego. This has involved the use of government money to support football clubs. For example, according to an article by Tomasz Mortimer in The Guardian, the Orban government spent around 2 billion Euros on stadium construction and youth academies’ development. Orban has also authorized 100 million Euros to Puskas Akademia FC in his hometown of Felcsut. Orban has subsidized clubs owned by his oligarch friends, which has raised concerns about how the government is spending money. Using government funds to construct football stadiums instead of investing money into healthcare or education is misguided.