Hungary is taking no chances with control of Mol (MOL:BUD), the national oil company. After announcing a €2.88bn deal to buy back a controversial 21.2 per cent stake from Surgutneftgaz, the secretive Russian energy group, Budapest is proposing to up its stake further, to up to 24 per cent.
The fact that the cash-strapped government, which emerged from an IMF rescue only last year, is spending big money on increasing national control over Mol highlights how sensitive Hungary is over Russian influence in the energy sector. Most other central European states are no different. Oil sector investors in the region ignore politics at their peril.
The additional shares are coming from the semi- private pension funds that the government is nationalising, taking control of their €10bn portfolios, including a 2-2.4 per cent stake in Mol. Peter Szijjarto, the government spokesman, said on television late on Tuesday that the state would also retain these shares taking its stake to up to 24 per cent.