ZAGREB, August 21, 2019 - The refurbished Cultural Centre in the eastern Croatian village of Korođ with a sizeable ethnic Hungarian community was opened officially on Tuesday evening and addressing the ceremony, Foreign Minister Gordan Grlić Radman said that Croatia and Hungary had a brilliant joint past and share common European values nowadays.

The local facility opens its doors to villagers after two-year refurbishment.

The ceremony of the opening of the centre was held on the occasion of Hungary's national holiday, when the Hungarians celebrate the first Christian king of Hungary, St. Stephen I, who established the Hungarian state in the 11th century.

A co-chairman of the bilateral committee for the protection of respective minorities in Croatia and Hungary, Zvonko Milas, said that both ethnic Hungarians in Croatia and ethnic Croats in Hungary enjoyed a high level of minority rights.

The Republic of Croatia and local authorities set aside two million kuna for the reconstruction of this centre. Ethnic Hungarian leader and a member of the Croatian parliament, Robert Jankovic thanked Croatia's authorities for the allocation of the funds.

More news about national minorities can be found in the Lifestyle section.

ZAGREB, June 19, 2019 - Croatian Energy and Environment Protection Minister Tomislav Ćorić and Hungarian Foreign Minister Peter Szijjarto on Wednesday agreed on setting up a working group tasked with analysing the potential cooperation on the gas markets of the two neighbouring countries.

After their talks in Zagreb on Wednesday morning, Ćorić said that they had discussed the possibilities of developing cooperation between the Croatian and Hungarian gas markets.

We have agreed on establishing a working group consisting of Croatian and Hungarian experts and in the coming months it will analyse potential pros and cons of such form of cooperation, Ćorić said.

The Hungarian minister confirmed that operators of the gas transport systems and national regulators would be included in this task.

This will be the closest cooperation between the Croatian and Hungarian gas markets so far, he added.

I would like underscore that we treat the diversification as a crucial issue. An LNG terminal is a realistic scenario and we believe that partnership can help us to be partners in this project and make it innovative from the view of the energy security of the region of Central Europe. Therefore we have agreed to continue our talks, Szijjarto said.

As for the gas supply diversification, he recalled that Hungary had already expressed readiness to negotiate a possibility for Budapest to have a 25-percent interest in the future company that would run and own the LNG terminal off the Croatian terminal of Krk.

Such cooperation could create a market situation whereby the purchase of the LNG gas at that terminal could be economically visible and competitive for us, the Hungarian minister said.

Ćorić said that he found this form of cooperation a positive step forward.

Such cooperation is expected to result in combination of stakes held by owners and the lease of capacities in the terminal. However, he admitted that there are differences in which steps to be taken in that regard.

More energy news can be found in the Business section.

ZAGREB, June 9, 2019 - Showing Croatian territory in a false historical context or promoting past failed aspirations is unacceptable to Croatia, the Foreign and European Affairs Ministry told the Večernji List daily when asked about an illustration showing a "historical" map of Hungary being torn up by hands grabbing at its territory, including parts of Croatia, which was published by Prime Minister Viktor Orban's international communications office, reports the Sunday issue of Večernji List.

A few days ago, Hungary marked its Day of National Unity, a memorial Day introduced in 2010 to commemorate the 1920 Treaty of Trianon, signed between the World War I Allies and Hungary at the Grand Trianon Palace in Versailles, France. Under the treaty, Hungary lost two-thirds of its territory that were distributed among the First Austrian Republic, the Czechoslovak Republic, the Kingdom of Serbs, Croats and Slovenes, and the Kingdom of Romania.

The Treaty of Trianon destroyed the Hungarian society, economy and political system, National Policy State Secretary Arpad Janos Potapi said.

To illustrate Potapi's statement, the government's international communications office published on its website, called About Hungary, and on related social network profiles, a "historical" map of Hungary - an illustration showing five hands tearing up Hungary and grabbing at its territory and population.

The About Hungary website features positive English and German-language articles about the Hungarian government's work and criticism of EU institutions.

"Immediately after the drawing - a 1921 cartoon - was posted on the About Hungary Twitter profile, the Foreign and European Affairs Ministry got in touch with the Hungarian side to let it know that the illustration, which shows parts of Croatian territory for which it is implied that they are Hungarian territory taken from Hungary under the Treaty of Trianon, is unacceptable and is a complete distortion of historical facts. We were given official assurances by the Hungarian side that the illustration is in no way an act of laying claim to Croatian territory, the controversial drawing was published to commemorate the historic event of signing the Treaty of Trianon, which ended World War I in this part of Europe, officials at the Croatian Ministry of Foreign and European Affairs have said," Večernji List reports.

The illustration has met with strongly-worded comments in Slovenia, too, but as in earlier cases, the response was not unanimous. The government has condemned the drawing while the Opposition, notably the SNS party of Janez Janša, who is close to Orban, has made no comment, says Večernji List.

More news about relations between the two countries can be found in the Politics section.

ZAGREB, May 30, 2019 - Hungarian Foreign Minister Peter Szijjarto said on Thursday the relationship between the Croatian INA oil company and Hungary's MOL energy group burdened relations between the two countries which, beside this problem, cooperated well.

Every time we meet with Croatian government officials, INA is on the agenda, but we always let our Croatian friends know that is strictly a business issue, not a political issue being dealt with by the Hungarian government, Szijjarto told reporters outside the Croatian government after meeting with Prime Minister Andrej Plenković.

I must admit the relationship between MOL and INA or MOL and the Croatian state is a burden in our relations and we would like to get rid of this burden, but that's up to the two companies or to the company and the Croatian state. We can only keep our fingers crossed that they come to a solution, said Szijjarto.

Advancement of the relations with Croatia on the energy front is crucial for Hungary, he said. Energy security in this part of Europe is a critical issue. You see the relationship between Russia and Ukraine when it comes to the transit of gas, you see that Exxon and OMV still haven't decided on the exploitation of gas fields in Romania. That's why the LNG terminal in Croatia is one of the viable solutions for the diversification of energy sources. And since we realise that energy cooperation can't be separated from the MOL issue, we hope for a solution to this challenge, Szijjarto said.

He arrived in Zagreb to open a new Hungarian Embassy building, saying this was a clear signal of the importance Hungary attached to relations with Croatia. We are neighbours and our allied and strategic connection is obvious. We wish to advance and strengthen that relationship, which currently has certain shadows because of energy issues, but other than that, we cooperate as we should, Szijjarto said.

A press release from Plenković's office said the two officials concluded that Croatia-Hungary relations had been enhanced in recent months. Trade exceeds 2.2 billion euro and bilateral cooperation within the EU and NATO is very good, it added.

They underlined the importance of boosting economic cooperation, notably in energy, by taking into account supply security in all of central and eastern Europe. They also talked about the realisation of the LNG terminal project in Croatia.

Szijjarto extended Hungary's full support to Croatia for entering the Schengen Area, and both officials said they were happy with the status and rights of the Croatian minority in Hungary and the Hungarian minority in Croatia.

Opening a new Hungarian Embassy building in Zagreb on Thursday, Foreign Minister Peter Szijjarto said many had humiliated and looked down on the central European peoples who were the driver of the EU's development today, which was why it was important to additionally bolster the unity and cooperation between Hungary and Croatia.

We know that the EU, European culture, identity and security are faced with big challenges, which is why it's good to see from Hungary that in our southern neighbourhood lives a proud people that wants to preserve its identity and won't renounce its Christian values, Szijjarto said outside the embassy.

Many humiliated and looked down on us in central Europe, yet we have become the driver of the EU's development, and for that jump to happen it was necessary to understand that it's better to cooperate than disagree, he said, adding that Budapest considers Zagreb an ally, a friend and a good neighbour.

We also won't forget that in the midst of the biggest attacks in the European Parliament, the Croatian members from the HDZ's ranks stood by Hungary, which is why I'd like to thank Minister Pejčinović Burić and the Croatian government, said Szijjarto.

Last September, the EP adopted a report calling on the European Council to find that Hungary was endangering democratic freedoms and fundamental rights, thus gravely breaching the values on which the EU was founded. Five Croatian MEPs - Dubravka Šuica, Ivana Maletić, Željana Zovko, Marijana Petir and Ruža Tomašić - were among those who voted against the report.

Szijjarto said Hungarians appreciated Croats very much and loved Croatia, as evidenced by the 600,000 Hungarians who summered on the Croatian coast last year, bringing Croatia 400 million euro in revenue.

He recalled that Croatia was first in Hungary's foreign investments.

Pejčinović Burić said trade was constantly rising, from 2.1 billion euro in 2017 to 2.3 billion euro in 2018.

The two ministers said Croatia-Hungary cooperation was excellent with regard to ethnic minorities and in science, defence, and in culture, which will be seen next year, during Croatia's EU presidency, in a joint exhibition on the ties between the two peoples at the Budapest National Museum and Zagreb's Klovićevi Dvori gallery.

More news about relations between Croatia and Hungary can be found in the Politics section.

ZAGREB, April 21, 2019 - The Zagreb City Assembly supported a proposal to erect a statue of Hungarian writer Jokai Mor along the promenade at Lake Bundek following a proposal by the city's Hungarian national minority council.

The Hungarian embassy in Croatia will donate a bronze bust of Mor Jokai and the foundation stone made of Hungarian limestone. The bust was created by Hungarian sculptor Lajos Gyorlf and is estimated at about 100,000 kuna while funds from the Zagreb budget of about 100,000 kuna will cover the costs of installing the bust.

Mor Jokai, who was born on 18 February 1825 and died 5 May 1904 in Budapest, actively participated in the revolution of 1848 and 1849. After being amnestied, he continued his political activities and dedicated himself to his writing.

Jokai was a novelist and playwright, producing more than 100 literary works. Many of his plays have been performed and well received in Croatia.

Some of his better-known works include: A Hungarian Nabob, Zoltan Karpathy, A Man of Gold, The Heartless Man's Sons, Poor Rich, Black Diamonds, Yellow Rose, and Working Days.

More news about cultural, political and other relations between Croatia and Hungary can be found in the Politics section.

ZAGREB, April 13, 2019 - The Hungarian government has made an offer to buy 25 percent of a LNG terminal that is to be built in Croatia, Hungarian Foreign Minister Peter Szijjarto told journalists in Dubrovnik on Friday, according to MTI news agency.

Szijjarto had talks with Croatia's Environment and Energy Minister Tomislav Ćorić on the sidelines of a China-Central and Eastern Europe summit and said it was crucial for Central Europe to diversify its gas supplies.

Szijjarto said it was in Hungary's strategic interest that the terminal should be built and that it should offer gas to Hungary at a competitive price. He added that the decision and the plans for the terminal have been in place, but "there has been no progress" in the physical implementation.

The Hungarian foreign minister said that Croatia had "not yet provided a clear answer" on the matter, as the country wants to take a decision on Hungary's offer at the same time as it contracts gas volume. Investing in the terminal is "a strategic issue" but "we will certainly not buy gas at a higher price than at present," he said, adding that the negotiations would continue.

Ćorić confirmed on Monday that he had received a letter of intent from Hungary to purchase a 25 percent stake in the future LNG terminal, adding that the interest in entering the ownership structure should be accompanied by an interest in the lease of gas from the LNG facility on the northern Adriatic island of Krk.

"A few weeks ago, Hungarian Foreign Minister Peter Szijjarto sent a letter of intent on behalf of the Hungarian government. Hungary is interested in buying 25% plus one share in the LNG terminal," Ćorić said then in response to questions from the press.

He said that talks with Hungary would continue at the summit of 16 Central and Eastern European countries and China in Dubrovnik. He noted that Hungary's demand for gas was considerably higher than Croatia's, given that Hungary's annual natural gas consumption ranges between nine and ten billion cubic metres, compared with Croatia's consumption of 2.7 billion cubic metres.

The value of the floating LNG terminal on Krk island is estimated at 234 million euro. The European Commission has approved a 101.4 million euro grant for the project, which is included on the Commission's list of projects of common interest.

The Croatian government has decided to set aside 100 million euro for the project, 50 million in 2019 and as much in 2020. The remaining 32.6 million euro will be provided by the founders of the LNG Croatia company - the HEP national electricity provider and the Plinacro gas network operator.

Ćorić reiterated that the construction of the LNG terminal was a strategic project for Croatia.

More news about the LNG terminal on Krk can be found in the Business section.

ZAGREB, March 8, 2019 - Hungarian Minister of Foreign Affairs and Trade Peter Szijjarto met with Croatian Minister of Environment and Energy Tomislav Ćorić in Budapest on Thursday, saying that Hungary's energy security would improve with a gas supply route from the south, presumably meaning the LNG terminal.

Both sides agreed that energy supply security in Central Europe remains one of the most important regional risks and they confirmed their commitment to deepening cooperation in the energy sector, the Hungarian ministry said in a statement quoted by MTI news agency. The statement said Hungary's energy security would greatly improve if it were able to get gas from the south.

Mr Szijjarto and his Croatian counterpart "acknowledged the importance of a final decision taken by the Croatian government on the construction of an LNG terminal on the island of Krk as well as the construction of a compressor station that would allow bidirectional operation of the gas interconnector between Hungary and Croatia," the statement said.

In late January, the Croatian government adopted a decision to finance the first stage of a floating LNG terminal on Krk, which is estimated at 234 million euro.

According to the government's decision, Croatia would secure 100 million euro from the state budget for the LNG terminal project, 50 million euro in 2019 and another 50 million euro in 2020, and before the payments are made, Croatia's electricity provider Hrvatska Elektroprivreda will secure loans to the LNG Hrvatska d.o.o. company to cover payments due in 2019.

The remaining funds of 32.6 million euro would be secured by LNG Hrvatska, Hrvatska Elektroprivreda and Plinacro.

The gas pipeline company Plinacro in February announced that the construction of the first compressor station for Croatia gas transportation system (KS1) was going according to plan. The value of that facility is estimated at 210 million kuna and the station could be up and running by the end of the year.

In addition to Plinacro's 75 bar transport system, the compressor station will enable an additional 500 million cubic metres of gas to be transported annually from Croatia to Hungary. Once the Omišalj-Zlobin pipeline is constructed that will connect the LNG terminal on Krk with Croatia's gas transportation system, it will be possible to transport 1.6 billion cubic metres of gas a year.

KS 1 is essential in the context of the Central and South Eastern Europe Energy Connectivity (CESEC) initiative and a Memorandum of Understanding between Croatia and Hungary was signed in that regard which led to an agreement on the establishment of two-way capacities on the existing interconnector between Croatia and Hungary on the Donji Miholjac - Dravaszerdahely route.

More news on the LNG terminal can be found in the Business section.

ZAGREB, February 20, 2019 - Prime Minister and Croatian Democratic Union (HDZ) leader Andrej Plenković has said that his Hungarian counterpart Viktor Orban, who is the chief of the Fidesz party, has made a mistake by publishing a controversial poster which accuses the European Commission and billionaire businessman George Soros of undermining Hungary's security, but stopped short of specifying whether Orban's political party should be expelled from the European People's Party (EPP) group in the European Parliament.

The Hungarian government has posted on its Facebook account a poster showing the faces of EC President Jean-Claude Juncker and Soros and including messages saying that the European Union will introduce mandatory migrant settlement quotas and reduce financial assistance for countries opposed to migration.

Earlier, the European Commission denounced the poster as a "ludicrous conspiracy theory."

Plenković on Wednesday evening joined in the criticism of such posters, explaining that making them public was a bad decision.

I think that it sends a wrong message about the EU migration policy, Plenković said in the northern Croatian city of Varaždin.

Asked by the press whether Fidesz should no longer be in the EPP group, which also includes the HDZ, Plenković answered: "We can't react as fast as you would want us to."

On Tuesday, Juncker said that Orban's Fidesz should leave the centre-right European People's Party. Orban is perceived as one of Europe's most vocal anti-immigrant leaders.

Fidesz is a leading party in Hungary and is projected to win a large number of seats in the EP in the forthcoming elections, which is why its expulsion from the EPP may weaken that group.

More news on the relations between Croatia and Hungary can be found in the Politics section.

ZAGREB, February 20, 2019 - Social Democratic Party (SDP) members of parliament on Tuesday defended for more than four hours about 300 amendments they submitted to the INA Privatisation Act, dissatisfied with the fact that it is being discussed under fast-track procedure, telling MPs of the ruling HDZ party that the government was turning over INA to the Hungarian energy group MOL and betraying national interests.

"This law regulates the privatisation of Croatia's biggest company and requires a serious and comprehensive debate. But the government has changed its approach, organising a public consultation... during the Christmas holidays, and it did not even last for the full 30 days, after which the amendments were submitted to be discussed under fast-track procedure," said Social Democrat Peđa Grbin.

He said that the government's claim that the purpose of the bill was to align the law with EU rules was not true.

"The fact that the European Commission considers a law as not being in line with EU law does not mean that that is true. The EC is not the one to make decisions on whether laws are in line with EU law, that is what the EU Court of Justice does," said Grbin, criticising the government for not even trying to prove that the existing law was not in line with EU law.

"A normal country and a normal government should define the energy development strategy. Judging by the information at hand, we cannot see any ambitious energy strategy plan," SDP MP Sinisa Hajdaš Dončić said, expressing concern about the country's energy sovereignty.

Another SDP MP, Željko Jovanović, said that the HDZ's election slogan "Credibility" was totally missed, recalling that two governments had fallen over INA (both were HDZ-led governments, one led by Ivo Sanader and the other by Tihomir Orešković, a PM chosen by former HDZ leader Tomislav Karamarko), adding that he hoped the HDZ would lose the next election over INA again.

"If this government had a plan, the PM would not have just said, off the top of his head, on Christmas 2016, that 'INA will be restored to Croatian ownership'," SDP MP Sasa Đujić said, claiming that the government was betraying national interests.

Objecting that the amendments envisage two Croatian government representatives overseeing INA's operations while currently Croatia has three seats on the INA management board, MP Domagoj Hajduković wondered if the proposed amendments were a result of arrangements between Hungarian Prime Minister Viktor Orban and PM Plenković.

"The Croatian government's representatives will continue to sit on INA's management board as will two independent members," State Secretary for Energy Ivo Milatić said, rejecting the SDP's amendments.

In an ironic remark to a recent statement by President Kolinda Grabar-Kitarović, SDP MP Predrag Matić said that "the President has discovered that corruption in Croatia dates back to the times of the Habsburg monarchy, while the HDZ is making it possible for us to return there.

"In the 1990s we sold our banks to Austrians, we will now sell INA to Hungarians, and chances are we will again be living in the Habsburg monarchy," he said.

SDP MPs said they would insist on a vote on their amendments. "You don't have to accept the amendments. It is clear to everyone that they were submitted to point to a problem. Accept our proposed conclusion and let us have a second reading on the bill," said Grbin.

The INA Privatisation Act, which went into force in 2002, defines the company's privatisation. The current bill of amendments changes Article 10 under which Croatia has the exclusive right of control over changes in the company's ownership structure as well as the right to veto certain decisions of the company's management and the right of pre-emptive buying of the entire company or parts thereof at an estimated market price in case the process of its liquidation is launched.

Under the bill, a party acquiring INA shares and wishing to own an interest of more than 50% should inform the relevant minister about this and submit to the minister a long-term business management plan.

Based on the minister's opinion, the government makes a decision on its consent for the acquisition of shares within a 30-day period.

The government can withhold or withdraw its consent if it decides that it constitutes a serious threat to public security and puts the country at serious risk of losing secure, reliable and regular energy supply.

More news on the INA-MOL issues can be found in the Business section.

ZAGREB, December 21, 2018 - The news that production at the Sisak oil refinery will be closed, although expected, disquieted workers on Thursday, and their spokesman Predrag Sekulić said they were "confused by the absence of a clear reaction from the government."

The arguments given by the INA oil company in favour of discontinuing production at Sisak are unconvincing and unilateral, he said, adding that workers are not surprised by the news.

"This is just a confirmation of our claim that the acquisition of INA by the Hungarian energy group MOL was a hostile takeover. We, however, are confused by the absence of a clear reaction from the government, whose representatives have said several times that they will push for the continuation of production and survival of the Sisak refinery," Sekulić told Hina.

He said that the union and workers were meeting on Friday to discuss their further steps.

INA announced on Wednesday that it would concentrate its refining business in Rijeka, while the Sisak refinery would be converted into an industrial centre focusing on other activities.

If the Sisak refinery is shut down, it will lead to further emigration and dying out of the local economy and other sectors, President Kolinda Grabar-Kitarović said in Varaždin on Thursday.

Asked if she could join in efforts to deal with the planned closure of the Sisak oil refinery, which could also be seen as a matter of national security, Grabar-Kitarović said that she would become involved, in line with her constitutional powers, because she was not authorised to make any decisions in that regard.

"I will definitely be in talks with both the Croatian and the Hungarian side with a view of keeping the refinery running because those jobs really need to be saved. Otherwise we will face further emigration and dying out of the local economy and other sectors," she said.

Varaždin County Prefect Radimir Čačić, who met with the president, said that the MOL oil and gas company had been planning for a long time to close down the Sisak oil refinery and that there was a conflict of legitimate Croatian and Hungarian interests in that case.

The Sisak refinery is part of INA, which is owned jointly by the Croatian state and the Hungarian oil and gas group.

"Under the initial agreement, Hungarians could in no way close down the refinery. Moreover, they undertook to upgrade and develop it further. The terms of those initial agreements have evidently been changed and the incumbent government lacks the strength to prevent the closing down of the plants," Čačić said, adding that the closure of the refinery was more a matter of the loss of a vital type of production than a matter of job loss.

"Most of the workers will probably get decent severance packages, retire or... there will be a switch to alternative production – the processing of the already processed oil products and their storage. The number of workers will not be reduced significantly. This is first and foremost about the loss of strategic production, that's the problem," said Čačić.

More news on the INA-MOL case can be found in our Business section.