Hungary said on Wednesday it was prepared to pay rubles for Russian gas, breaking ranks with the European Union which has sought a united front in opposing Moscow’s demand for payment in the currency.

Hungary will pay for shipments in rubles if Russia asks it to, Prime Minister Viktor Orban told a news conference on Wednesday in reply to a Reuters question.

Russian President Vladimir Putin has warned Europe it risks having gas supplies cut unless it pays in roubles as he seeks retaliation over Western sanctions for Moscow’s invasion of Ukraine.

With weeks to go before bills are due, the European Commission has said that those with contracts requiring payment in euros or dollars should stick to that.

Hungary’s Foreign Minister Peter Szijjarto earlier said that EU authorities had “no role” to play in its gas supply deal with Russia, which was based on a bilateral contract between units of Hungarian state-owned MVM and of Gazprom.

Meanwhile, Brussels has triggered a process in Hungary that threatens to link the payment of EU cash to respect for rule of law.

It comes two days after Viktor Orban, secured a fifth — and fourth consecutive — term as Hungary’s prime minister.

Orban has clashed frequently with the European Commission over respect for key EU values, such as LGBT rights, rule of law, and attacks on independent media.

Now, the European Commission has notified Budapest it is triggering the so-called “conditionality mechanism” over rule of law breaches, opening the door to financial sanctions.

“The Commission has today spoken to the Hungarian authorities that we will now send a formal letter to start the conditionality mechanism,” European Commission chief Ursula von der Leyen told MEPs.

source reuters.com