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The Political and Economic Relations between Hungary and Ukraine

Photo: Reuters

Hungary and Ukraine, two neighboring countries in Eastern Europe, share a complex and multi-faceted relationship. Both countries have exhibited deep historical, political, and economic ties, which have evolved significantly over time. Despite some periods of tension, the overall relationship between the two nations has been characterized by a mix of cooperation and competition, shaped by regional geopolitics, economic interests, and cultural connections. Historically, Hungary and Ukraine have shared a complicated relationship due to territorial disputes and the issue of Hungarian minority rights in Ukraine. The Treaty of Trianon in 1920 stripped Hungary of approximately two-thirds of its territory, with significant Hungarian minorities left in countries including Slovakia, Romania, Serbia, and Ukraine. The relationship between Hungary and Ukraine has been heavily influenced by these historical events, with minority issues often resurfacing in political and diplomatic discussions. In Ukraine’s Zakarpattia region, a substantial Hungarian minority resides, and their rights and treatment have been a recurring point of contention between the two countries. Political relations between Hungary and Ukraine have fluctuated over time, influenced by a variety of factors such as Ukraine’s relationship with the European Union and NATO, the Russian-Ukrainian conflict, and the issue of the Hungarian minority in Ukraine.

In recent years, the issue of education rights for the Hungarian minority in Ukraine has strained political relations. The Ukrainian government’s education law of 2017, which aimed to promote the use of the Ukrainian language in schools, was met with criticism from Hungary. Budapest saw it as a move that would undermine the rights of the Hungarian minority in Ukraine. Meanwhile, Ukraine’s aspirations to join the European Union and NATO have also influenced its relationship with Hungary. Budapest has expressed its support for Ukraine’s EU integration but has also used its EU veto power to express dissatisfaction over the issues regarding Hungarian minorities in Ukraine.  On the economic front, the relationship has been characterized by mutual dependence and cooperation. Hungary, as a member of the European Union, presents an attractive market for Ukrainian goods and services. Despite the political tensions, Hungary has remained one of Ukraine’s important economic partners. Hungary has significantly invested in Ukraine, particularly in the sectors of energy, banking, and manufacturing. The energy sector plays a crucial role in the bilateral economic relationship. Hungary relies on Ukraine as a transit country for natural gas from Russia, making energy security a shared interest. However, the economic relationship is not without its challenges. Disputes over energy, particularly the controversy surrounding Russia’s Nord Stream 2 gas pipeline, have occasionally strained economic ties. Furthermore, the impact of the ongoing conflict in Eastern Ukraine on the region’s stability and economic security is a concern for Hungary. The political and economic relations between Hungary and Ukraine are complex, influenced by historical, political, and economic factors. While political tensions exist, particularly over issues relating to the Hungarian minority in Ukraine, economic ties have remained relatively strong, with both nations recognizing the mutual benefits of cooperation. Looking forward, the resolution of minority rights issues, the stabilization of the region, and the strengthening of economic ties will be crucial for the future relations between Hungary and Ukraine.

By Sara Colin

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