Hungary DIPLOMACY & COMMERCE PRESENTS
The Hungarian capital, Budapest, is a unique city in the World. It lies on numerous thermal springs where 70 million liters of thermal water come up to the surface daily.
Budapest’s iconic metro line M1 was constructed in 1896 and, since then, has constantly connected the center with Varosliget under the posh Andrassy street. It is the oldest metro in continental Europe.
Hungarians don’t like to clink with their glasses while drinking with friends. Clinking reminded them of the 1848 revolution when Austrians celebrated the killing of 13 Hungarian generals by clinking with beer.
GROUND PEPPER
Considering the population size, Hungary is ranked second in the World, just behind Finland, in the number of Olympic gold medals won.
Paprika (pepper) was adopted in Hungary in the late XVI century. Still, it remained unpopular until the end of the XIX century when mills around the Tisza started to ground it, making it the most characteristic Hungarian spice today.
GOLD MEDALS
FOCUS ON
THE OLDEST METRO
THERMAL WATER
NO CLINKING
Despite certain great conflicts in byyearshundredshistory,Europeanwespentoflivingsideside
to be secured by the law, so strong minority rights are a must. I see that both Budapest and Belgrade recog nized this need and the increasing support and opportunities for the respective minorities prove that words are followed by deeds.
In these complicated times, we need to send clear messages and reinforce already existing partner ships – such as the one between Ser bia and the EU. At the same time, we need Serbia to implement all the reforms set in the EU acces sion process. I like to summarize it this way: delivered results speak for themselves.
The position of the Hungarian mi nority in Serbia is one of the very few positive examples in Europe of respecting minority rights. Do you agree with that statement and how important is that for both nations?
— The international political envi ronment has become hard to navi gate recently and we need the cour age to stand up for ourselves. Every action is followed by a reaction, so it is not a surprise that some acts of foreign policy are not welcome by everyone. Yet this is not necessar ily a problem. Careful balance and good judgement are needed to find the right way to express our nation al interests and to understand dif ferent motivations and interests. We seek like-minded countries and I think Serbia is one of them in this matter.
— I think we can learn one thing: we can overcome our differences with genuine willingness and un derstanding. This was demonstrat ed in the political reconciliation process. There were times when our nations’ relations were at their low est point, but I think both of us rec ognised that there are more things that connect us than separate. De spite certain great conflicts in Euro pean history, we spent hundreds of years living side by side. We learned each other’s customs and traditions and even borrowed some words into the language. This experience may not be as visible to us as some great events, but this is what tru ly defines Serbian-Hungarian re lations. We are trying to make this more and more visible so it will be come a dominant perspective – a perspective of understanding and respect. There is now a historic alli ance, even friendship, between the two countries.
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H.E.PINTÉRATTILA
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A nation that strives to be true to itself in this era of unanimous glo balization usually has to deal with a lot of outside judgment. How important it is to stick to your na tional interest despite pressures from abroad?
Hungary strongly supports Serbia in its long-lasting process of join ing the European Union. Do you think that the accession process could be faster? What does Serbi an membership in the EU mean to Hungary?
— I believe that the EU needs to rec ognize Serbian efforts and we need to speed up to process as soon as possible! Hungary wants Serbia in the EU and we are spreading the word in every possible forum. Hun gary is connected to Serbia in many ways and we want to work on these political, economic and social ties. There are a lot more opportunities to do so if we are both in the EU.
— Yes, I agree with the statement. I am certain that this field plays a crucial role in our relations and there could be no development un less minority rights are guaranteed. We look at minorities as a bridge be tween Serbia and Hungary. They help to connect us and we show re spect and support to them so that they can preserve their culture and identity. Of course, this also needs
Ambassador of Hungary to Serbia INTERVIEW
It is not idealistic to think that there is more to politics than just interest - there is also empathy, understanding, and solidarity
A Perspective UnderstandingofandRespect
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true friend of Serbia, H.E. Mr Attila Pintér, the Hungarian Ambassador to Serbia, spoke with Di plomacy&Commerce magazine about many intriguing topics relat ed to our mutual history, deep friendship, and significant econom ic cooperation.
by Dragan Nikolić
Many think that ties between our two countries have never been as close as today, but what could our mutual history teach us about re lations between Hungary and Serbia?
Hungary is a very popular tour ist destination for people from Serbia. What should we do to make Serbia more attractive to Hungarians?
Serbia has followed a similar path in the last ten years, and the economic successes clearly illus trate that it is on the right path. These efforts are also recognized by international financial institutions. In my opinion, this path is correct and the good results so far should be preserved. The point is that the state must remain a strategic player in the market economy and take ap propriate measures quickly in case of crisis. Fortunately, this kind of approach has already been adopted by international financial organiza tions in recent years.
What is the prospect of the West ern Balkans region in the context of EU integration? Does Hungary have unresolved issues with Ser bia which resolution is a prerequi site for our country to join the EU?
— The Hungarian experiences dur ing the transition to a market econ omy are mixed from a historical perspective. Even during the re gime change of 1989-1990, Hunga ry clearly marked the political and economic direction that eventually led to joining the European Union in 2004. Hungary began its trans formation along 3 main principles: 1. a disciplined budget policy; 2. the level of state redistribution should be as small as possible; 3. the goods, money and capital markets must be liberalized and privatized so that manufacturing exports become the engine of economic growth.
allocation, to day Serbia is a priority target coun try for Hungarian enterprises. On this note, in November 2019 the Min istry of Foreign Affairs and Trade of Hungary launched a specialized fi nancial instrument, the Western Balkans Investment Scheme with the specific aim to foster the eco nomic development of the Balkan region – including Serbia – through strengthening the presence and role of Hungarian companies. The pro gram was considered highly suc cessful, thus the Hungarian govern ment continued implementing the
— I believe so. Yes, there are genu ine friendships. It is not idealistic to think that there is more to politics than just interest - there is also em pathy, understanding, and solidar ity. If we are willing to learn from each other, we might realize that we have a lot in common and we can overcome historical differences. Hostility always thrives on the fear of the unknown. I have made true friends in Serbia during my years here and I hope this can happen be tween our nations too.
initiative of promoting Hungarian investments abroad with a new pro gramme called the Foreign Market Growth Incentive that has a global scope. These new investments will have visible results in the coming years.
From the Hungarian experience during the transition to the for mation of the free market, what is your advice for the Serbian econo my? Should some bottom lines be drawn?
reinvestments.Intermsofcapital
— Doing business and fostering eco nomic cooperation has had a long standing tradition between Hungar ian and Serbian companies. As one would expect from neighbouring countries, we cover a wide range of fields of cooperation that includes bilateral trade, joint efforts in in frastructure development as well as cooperation on energy security. Re cently, we have seen a growing in terest of Hungarian companies in
Learning from the experiences of the initial years, the goal of the par adigm shift in economic policy af ter 2010 was to cut back on the phe nomena typical of wild capitalism and to bring strategic infrastruc ture companies back into state or at least national ownership. The bank ing system also came under major ity Hungarian ownership. We man aged to achieve all of these changes, with record foreign direct capital flow into the country year after year.
— There is a growing interest in Hungary for Serbia. I believe that a more thematic approach and a strong media campaign would at tract more tourists. For instance, it would be great to present the dif ferent regions of Serbia, also hik ing and skiing opportunities as well as the gastronomy and local tradi tions. The offer of hotels and tour agencies is of high quality in Ser bia, but Hungarian travellers need to be informed of the amazing of fers waiting for them.
The EU is thethedevelopmentandthepotentialandWesternwithoutincompletestilltheBalkans,thereishugeforeconomicsocialofregionwithinEU
Some would argue that different nations cannot be true friends but cooperate just out of interest. From your perspective as a dip lomat, is it possible to develop a genuine friendship between two nations irrespective of individual interests and historical context?
— There are no unresolved is sues in our relations. We want Ser bia to become an EU member as soon as possible. The EU is still in complete without the Western Bal kans and there is huge potential for the economic and social develop ment of the region within the EU. I dare say that EU funds would bene fit all walks of life and could change the everyday life of citizens for the better.
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Our economic cooperation has been flourishing for many years. What are recent investment trends like?
investment opportunities in Ser bia. It is evident that in the last few years Serbia has gone through an impressive economic recovery that paves the way for growing stabili ty and competitiveness. These eco nomic conditions are paired with a talented and hard-working work force and state incentives provided by the Serbian Government, mak ing Serbia an extremely attractive investment destination. These fac tors all contributed to the increased interest in the country’s investment opportunities; a fact clearly indicat ed by the growing FDI influx. Big in vestors, such as the internationally renowned petrochemical company MOL and the Hungarian OTP Bank Group have a long-standing pres ence in the country, continuous ly expanding their activity through
sy in Serbia in order to find sustain able and flexible solutions for stable supplies during the upcoming pe riod. Thanks to our storage capaci ties in Serbia, as well as the commit ment of our employees, our service stations in Serbia, have sufficient quantities of MOL EVO and EVO Plus fuel. In terms of fuel prices in Serbia, they will depend on the pric es on the global market and regula tory measures. I don't think anyone can predict the trend for the follow ing months at this moment.
— Following the pandemic that af fected many segments which also forced us to adjust our business ac tivities, this year, our industry, un der the geopolitical influence, is facing a completely unpredicta ble, very volatile, and uncertain business environment. Regulatory measures in local markets, includ ing Serbia, make our business ac tivities even more difficult. We in MOL are trying to preserve the sta bility of the oil derivatives market, especially when it comes to sup plies. Along the way, we encounter many challenges: an overhaul of re fineries in the region and low water levels on the Danube that have re duced barge loads and transport of fuel. We are constantly in touch with representatives of the Serbian Gov ernment, as well as the Association of Petroleum Companies of Serbia, and we have been given significant support by the Hungarian Embas environmentbusinessandveryunpredictable,completelyisinfluence,geopoliticalunderindustry,thefacingavolatile,uncertain JANKOVIĆ
— MOL Group published H1 re
CEO MOL Serbia CORPORATE
r Milenko Janković, CEO of MOL Serbia, reveals in this interview how they cope with the actual en ergy crisis and how they plan to be come the first choice of the custom ers in fuel and convenience retailing in Serbia and the region.
sults which show that despite all the challenges, we have recorded strong performance. Upstream and Downstream segments were able to mitigate the impact of fuel price reg ulation in some of the countries we have operations. Consumption and sales volumes in most of the mar kets are rising, including Serbian markets, but the price cap has a neg ative impact on our retail results. Having in mind market conditions and Strategy 2030+ goals in Ser bia, we are focused on the transfor mation of our service stations into places that are more than petrol sta tions. Also, we go more deeply into food and convenience offers. At this moment, our main duty is to main tain the security of supply despite all challenges and obstacles.
— Our desire is to offer customers more than just a place to fill up with fuel - a place where they can finish basic shopping, drink good Fresh Corner coffee, and take a break from a long journey at one of MOL Serbia Fresh Corner restaurants taste deli cious hot-dog, sandwiches and pas tries. We are expanding our prod ucts portfolio range, and recently we have introduced in Serbia MOL brand products - JIM energy drink and Crunch&Go chips, developed to meet the needs of our custom ers, keeping up with market trends. Also, following comments and cus tomers’ suggestions, we improve the MOL GO application and offer ad ditional benefits to MOL Plus Klub loyalty program members. Our goal is to become the first choice of the customers in fuel and convenience retailing in Serbia and the region.
What are MOL’s financial results according to the latest financial statement published in June? How do you comment on them?
More Than Just a Place to Fill Up
What do service station transfor mations mean?
Which are the new stations of MOL in Serbia? What is the coverage of Serbia, and where can we expect new stations in the near future?
We are facing a major energy cri sis. What are your predictions when it comes to winter? Is MOL ready, and what trends in terms of fuel prices in Serbia in the period to come do you expect?
Having in mind market conditions and Strategy 2030+ goals in Serbia, we are focused on the transformation of our service stations into places that are more than petrol stations
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MILENKO
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Our
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— In the period behind us, we opened service stations in Užice and Zlatibor region – Bela Zeml ja and Prijepolje. I am proud of our team that manages to open new sta tions and bring MOL closer to cus tomers even in these challenging times. For MOL Serbia, those two locations are very important since we want to increase our presence in that part of Serbia and introduce our products and services. We are focused on main roads where there is a need for service stations. One of the goals in Serbia, in accord ance with MOL Group Strategy 2030 + “Shape Tomorrow”, is to continu ously expand our retail network and to work on the transformation of the existing stations in order to provide excellent service and high-quality products.
“We want to work together in the energy transition process. We be lieve Hungary can help us be even more efficient in that process. Re gardless of everything that is hap pening and the energy crisis in Eu rope and the world, there is no avoiding the energy transition be cause it is a step towards greater en ergy security,” said Serbian deputy prime minister and minister of min ing and energy Zorana Mihajlovic.
ing to the first assessment of Hun gary’s crisis package, the export of gas rented storage slots to Serbia would be exempted from the ban.
At the end of July, Hungary de clared a state of emergency in the energy sector, including a ban on the export of energy, which worried the European Union administration and other member states. Accord
by Dragan Nikolić
a dispute with the European Un ion which insists on solidarity dur ing energetic crises, Serbia, howev er, will cherish good relations with Hungary. The neighbour from the North showed high solidarity with Serbia by inking many deals in the energy sector that could establish a reliable natural gas supply.
The project of building a ofenergyessentialandbetweeninterconnectiongasSerbiaBulgariaisforthesecuritytheregion
erbia and Hungary have excellent political and bilateral relations. Hun gary is an important trade partner of Serbia, the third in terms of exchange among the EU countries and the sixth overall.
ECONOMY
Hungary and the Energy Crisis in Europe
Serbia agreed with Hungary to store 500 million cubic meters of gas in its storage facilities for use during the winter season. For Serbia, it is also essential to have the possibility to import electricity because domes tic production won’t be able to cover consumption.Whilethese measures triggered
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During the major energy crisis in Europe, Hungary and Serbia tied their relations and even planned more investments in innovative technologies
HUNGARY 60 SPECIAL EDITION
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Most likely, there won’t be enough natural gas for the heating season, which worries many coun tries, including Germany, the larg est one. Hungarian administration stated that gas in storage could cov er consumption for three months only. That’s why Hungary will in crease domestic gas production from 1.5 billion to two billion cubic meters per year.
"The hydrogen strategy will be integral to the new energy devel opment strategy, which is being drafted. Given that Hungary has al ready adopted a hydrogen strate gy, it would be essential for Serbia to exchange experiences and work on a common approach in the field of green hydrogen. Also, Serbia has prepared a new investment plan, in which the focus is on the con struction of new hydroelectric pow er plants and new capacities from renewable energy sources, where there is also room for cooperation between the two countries, "said Mihajlovic.Palkovics said that the issues of availability, access, and price of en ergy are critical today and that the issue of energy independence has also been added to them. He said that the area for which the memo randum was signed today includes important topics such as the pro duction, storage, and transport of hydrogen and that Hungary, which already has some experience, is ready to share with Serbia its strat egies and regulations as well as in vestment plans and projects.
Minister Szijjarto especially em phasised the importance of a sta ble supply of natural gas to Hungary through the territory of Serbia and expressed the readiness of the Hun garian side to improve relations in the field of energy further.
"The future is in the exchange and distribution of energy. We are interested in working together to improve the distribution network as part of the European network. Also, Serbia and Hungary are involved in constructing the gas pipeline and the topic of the inflow of Russian gas. There are many investment op portunities. We want to invest in Serbia; that’s why we are here, to ex plore all opportunities and possibil ities," said MihajlovicKobor.confirmed that Serbia is in the process of preparing a new national plan for climate and ener gy and working on a new strategy in energy. The first step is to adopt a new law regulation on renewable energy sources said minister Miha jlovic, simultaneously revealing the plan to run a new investment plan in mining and energy worth 15 bil lionSpeakingeuros. of renewable ener gy, the two countries confirmed a joint strategy. Earlier this year, Ser bian deputy prime minister Zora na Mihajlovic and Hungarian min ister of Foreign Affairs and Trade Peter Szijjarto agreed that Serbia and Hungary are partners in the energy field and will work togeth er on the development of hydrogen technologies.MinisterMihajlovic and the Min ister of Technology and Industry of Hungary, László Palkovics, signed
Deputy Prime Minister and Min ister of Mining and Energy, Zora na Mihajlovic said in talks with her Hungarian colleague Mr Szijjarto that along with the existing Balkan Stream gas pipeline, the project of building a gas interconnection be tween Serbia and Bulgaria is essen tial for the energy security of the region, which will enable the diver sification of routes and natural gas suppliers.According to the 15-year con tract with Gazprom signed last year, Hungary receives 3.5 billion cubic meters of gas annually through the Turkish Stream pipeline via Bulgar ia and Serbia, and another one bil lion via Austria. Gas secures 85% of Hungary’s heating needs, while the country imports 65% of its oil and 85% of gas from Russia.
The Government of Hungary in tends to increase coal production as much as possible, activating the Matra thermal power plant as soon as it can and extending the lifespan of the Paks nuclear power plant. Hungarian minister Gergely Gulyás said that limiting electricity and gas prices for all households simply isn't possible amid a war-induced energy crisis. Subsidised prices will therefore be maintained only up to the average consumption, set at 210 kilowatt-hours (kWh) of elec tricity and 1,700 cubic meters of gas per month. He added that house holds with higher consumption would have to pay market prices for everything spent above the limit.
Earlier this year, Zorana Miha jlović held a meeting with Gyorgy Kobor, president of the Hungarian company MVM Group, and repre sentatives of the Hungarian Embas sy in Serbia. Gyorgy Kobor stated that this company plans to operate in Serbia and Belgrade as the centre
the Memorandum of Understand ing on renewable hydrogen between the two ministries. The signing of the memorandum was preceded by a meeting of the delegations of the two ministries, which was also at tended by the Hungarian ambassa dor to Serbia, H.E. Attila Pinter.
61SPECIAL EDITION of the entire region.
Hungary’s storage facilities, with a total capacity of 6.33 billion cubic meters, are 44% full, with 2.74 bil lion cubic meters. It is the lowest amount on a seasonal basis in the last four years, well below the 4.5 billion measured a year ago and 5.4 billion cubic meters a year before.
JOINT STRATEGY FOR HYDROGEN TECHNOLOGIES
GovernmentThe of Hungary intends to increase powerthetheandsoonpowerMatraactivatingpossible,asproductioncoalmuchasthethermalplantasasitcanextendinglifespanofPaksnuclearplant
In the first six months of this year, OTP banka made a profit be
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INNOVATION IN ACTION
THE LEADER OF THE GREEN TRANSITION IN SERBIA
fter the successful com pletion of the most com plex integration in the region in May 2021, OTP banka has managed to maintain and boost its position as the largest cor porate and retail creditor in 2021 and 2022, as well as the market leader in factoring, leasing and e-commerce services. This was also recognized by the world-renowned magazine Euro money, which at this year's Euro money Award for Excellence 2022 ceremony declared OTP banka as the "Best Bank in Serbia". This is one of the most significant and prestigious recognitions in the financial sector, which has been awarded for the last three decades to financial institu tions that provide clients with the highest level of service, innovation and expertise. This achievement is the result of successfully imple mented banking integration, excel lent business results with growing profitability, operational efficiency and healthy loan portfolio growth, which set OTP banka apart as a lead er in our country's banking market.
AWARDS FOR HR PROCESSES AND EXCELLENCEPROGRAMME
OTP Leasing Srbija, Serbia's leas ing market leader, as well as OTP Osiguranje, which provides life in surance services through OTP ban ka, both operate under OTP Group in Serbia.
its own carbon neutrality, this year, OTP banka adopted the Sustaina ble Business Strategy, i.e. the ESG Strategy, and as a recognized mar ket leader, positioned itself as first in green transition in Serbia and the implementation of ESG principles of action. The Bank uses electricity generated exclusively from renewa ble sources (100% ZelEPS), while its central office building in Belgrade has its own solar panels on the roof. In previous years, several initiatives and projects were launched follow ing the green transition as one of the key strategic directions, with the multiple award-winning Gener ator Zero project, which focuses on sustainable development, and envi ronmental projects that aim to con tribute to the reduction of carbon footprint, standing out.
PROFITABILITY GREW BY A RECORD 95 PERCENT
A significant increase was also achieved in the corporate lend ing segment, where 2.5 billion eu ros worth of loans was approved, a 21.9% growth compared to the same period of the previous year. Hence, OTP banka firmly occupies first place with a 16.8% market share in corporate lending.
In viamobilesecurelyeasilytoitshasOTPandwithcooperationGoogleMastercard,bankaenabledcustomerspayquickly,andbyphoneGooglePay World-renowned magazine Euromoney declares OTP banka the best bank in Serbia
Best Bank in Serbia
In cooperation with Google and Mastercard, OTP banka has enabled its customers to pay quickly, easi ly and securely by mobile phone via Google Pay. This service is availa ble to users of Mastercard cards, is sued by OTP banka, and is available on mobile phones and smartwatch es that support NFC technology. Back in 2019, the Bank introduced the opportunity of using Android mobile phones in the form of the mCard service, while in 2020, it en abled the Apple pay service to users of the iOS operating system. A com pletely new and technologically im proved m-bank application was also recently launched, which ensures a high level of performance and se curity, improved and new function ality, and a modern, intuitive and streamlined design that provides users with a unique level of user experience.
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fore tax in the amount of 66 mil lion euros, with a return on capital of over 16%. The bank's profitability increased in one year by 95%, i.e. 32 million euros. In June of this year, net assets amounted to EUR 5.96 billion, which is a 628,8 million euro increase compared to the first half of 2021, i.e. 11.8%.
HUNGARY 62 SPECIAL EDITION
In terms of loans, in the first six months of this year, OTP banka granted loans in the total amount of almost 4.7 billion euros, which is a 16.2% increase or 660.2 million eu ros compared to the same period of the previous year. With this, the bank continues to occupy first place on the Serbian market with a mar ket share of 17.6%. In the first half of the year, granted housing loans amounted to over 1 billion euros, which is a 22% market share. A big jump was also recorded in approved cash loans, which amounted to 1.1 billion euros – a 7.9% growth and 20.2% market share.
The Bank's leadership position is based on a corporate culture that enables employees to constant ly develop while instigating chang es and innovative solutions. This is confirmed by two important rec ognitions from 2022 – the Employ er Partner certificate, a prestigious HR recognition that guarantees the excellence of HR processes in com panies and validates a continuous investment, modernization and improvement of employee experi ence, as well as the Human Driv en Reshape Award for the most in novative HR practice for the BFF programme.
Bearing in mind that the Bank's ambition is to be the market lead er in green financing with a contin uous transition towards achieving
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E
HUNGARY 64 SPECIAL EDITION
In the period from January to December 2021, Serbia mostly ex
conomic and trade rela tions with Hungary, which was and remains Serbia's strategic part ner, both in the political and eco nomic sense, have significant pros pects for growth and mutual benefit. According to data collated by the National Bank of Serbia, in the peri od from 2010 to 2021, investments by Hungarian residents in the Re public of Serbia amounted to one billion euros, which made Hungary the ninth biggest foreign investor in Serbia in the observed period.
The fairsimportantinbythings,amongexportaeconomySerbianneedsmoreactivestrategy,otherhelpedparticipationthemosttradeinHungary COOPERATION Excerpt from the report compiled by the CCIS’ Sector for Strategic Analysis, Services and Internationalization
Economic cooperation between the two countries is constantly on the rise. In the first quarter of this
ported the following to Hungaryignition lead sets, other sets for ve hicles; multi-component electronic integrated circuits; maize, except for maize seed; pipes and hoses (rig id, made of plastic); calcium phos phates; external pneumatic tires andInothers.thesame period, Serbia most ly imported the following products from Hungary - unclassified goods by the Customs Tariff - goods in storage; gas oils; medicines for re tail sale; electricity; conductors and others.Inits report on economic coop eration between Serbia and Hunga ry, the Chamber of Commerce and
year alone, Hungarian investments in our country totalled 7.9 million euros. Trade between the two coun tries is growing year on year too. Last year, it amounted to 2,291.9 million euros, which is an 18% increase com pared to 2020. Total Serbian exports to Hungary in that period amounted to 1,088.9 million euros, while Hun garian exports to Serbia amounted to 1,203 million euros. The external trade deficit in 2021 was 114.1 mil lion euros, and the import-to-export ratio was 90.5 per cent, which is an increase of 19.8 percentage points compared to 2020.
Economic Cooperation is Constantly on the Rise
65SPECIAL EDITION
RECENT HISTORY OF THE COOPERATIVE ECONOMY
Industry of Serbia states that in order to increase Serbian exports to Hungary, the trade between the two countries should be more balanced.Toachieve these goals, it is vital to develop infrastructure, more pre cisely, continue with the project of overhauling the Budapest-Belgrade railroad, which is financed by the Chinese fund CIEZ.
tion of business meetings between companies from the two countries, the exchange of economic informa tion, and cooperation regarding the participation of the two chambers’ members at trade fairs and exhibi tions, as well as holding seminars in Serbia and Hungary.
The Hungarian-Serbian Business Council was founded in 2006, and it gathers the largest Hungarian com panies, some of which are already operating in Serbia (OTP Bank, MOL,TheMegaplast).Hungarian side informed their Serbian counterparts that the Hungarian government has a very important goal of increasing its eco nomic presence in the surrounding countries, including the Republic of Serbia, not only in the segment of trade but also in investments. The Hungarian government is also keen to improve the Serbian- Hungarian trade. To that end, on October 28, 2015, the Hungarian National Trad ing House A.D. (MNTK) opened its first representative office in Serbia in Belgrade, which covers the entire Serbian market.
The participants of the Busi ness Forum were addressed by the co-chairman of the Joint Commis sion, Andjelka Atanasković, Serbi an Economy Minister, on behalf of the Republic of Serbia, and Péter Szijjártó, Minister of Foreign Af fairs and Trade of the Republic of Hungary.Thebusiness delegation from Hungary consisted of companies from various sectors, including the agricultural and food industry, tour ism, metal-processing industry, as well as the IT and health sectors .
SERBIA-HUNGARY BUSINESS FORUM
In February 2004, the Cham ber of Commerce and Industry of Serbia signed a cooperation agree ment with the Hungarian Chamber of Commerce and Industry, which envisages performing joint activ ities to develop bilateral econom ic relations through the organisa
According to the data collated by the Agency for Business Regis ters of the Republic of Serbia, 655 active business entities, which are majority-owned by Hungarian citi zens and legal entities registered in Hungary, are active in the Republic of Serbia.
On the occasion of the 11th Ses sion of the Joint Commission for Economic Cooperation of the Re public of Serbia with Hungary, the Serbia-Hungary Business Forum was held on June 4, 2021. In coop eration with the Hungarian Export Promotion Agency, the Chamber of Commerce and Industry of Ser bia organised a Business Forum and bilateral meetings of Serbian and Hungarian business people on the Chamber’s premises.
The story about Tokaji wine would never be completed if Balkan wasn’t mentioned and involved. Al though this Hungarian wine is rec ognized as the oldest sweet (des sert) wine in the World, this is just because there is no evidence of the same wine-producing technolo
In a beer-drinking country, a wine from Tokaj took all the fame
TRADITION
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In 2022, the region with 28 villag es and more than 11 thousand hec tares of vineyards has been declared a World Heritage Site by UNESCO. A smaller part of the historical wine region now belongs to Slovakia.
of Tokaj and the Hungarian word “aszu”, which means “dry”.
olcanic soil at the foot hills of the Carpathian Mountains stretches in far northeastern Hunga ry and keeps the secret of the first world’s official wine region. Hun garian king Karoly, known as Charles I of Hungary, declared the medieval town of Tokaj and its sur roundings a wine region, 120 years before the famous Bordeaux in France.Hungary, more a beer-drinking country, suddenly become famous for sweet and controversial wine named Tokaji Aszú, after the town
gy adopted from the Balkan penin sula, where this method was prac tised first and then spread to the north at the Tokaji region. Howev er, this is only one of many different legends about the beginning of To kaji Aszu wine. The most acceptable story came from the XVII century when Hungarian nobleman George I Rakoczi, Prince of Transylvania, was forced to fight against the Otto man invasion from the Balkan. His wife ordered their vineyard manag er to postpone the harvest due to in vasion, only to find grapes in a state of extreme dryness.
HUNGARY 66 SPECIAL EDITION
The Story of Tokaji Wine
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67SPECIAL EDITION
vours of “Noble rot” wine, like To kaj. Botrytis adds many different flavours and sometimes it is like honey, beeswax, or ginger, but al ways it is sweeter than regular wine. Also, it contains phenylacetalde hyde, which gives a special aroma to it and commonly is found in milk chocolate.Tokajiwine could be made from many grape varieties, but the most popular in modern days is Furmint, which is believed to be the flagship of Hungary. Furmint could be found all over Hungary, but it is consid ered one of the authentically Toka ji varieties which brings extra dry wine, less sweet, but still good as Aszu.The history of Tokaji wine has a huge black spot during the Sovi et era, despite its former fame. The wine was a symbol of aristocracy and as such was ignored, while pro duction was in hands of state-owned companies. The quality of produced wine was not the focus of the Sovi et henchmen who manage it. While production was exported exclusive ly to the Soviet Union and countries behind the Iron curtain, Western World has never got a chance to try Tokaji. Only after the fall of the com munist regime, and vineyards have been privatized did Tokaji wine get a well-deserved place.
Higherwine. latitude and cold and wet climate are not ideal for wine-pro ducing, but what once was the grape plague here in Tokaj became an ad vantage. Moist in the air favours the
The fame of Tokaji wine comes from a very strange plague that usu ally kills the grapes, but in this case, it triggers the most interesting grape maturation that gives unique sweet ness and taste. Noble rot (Botryt is Cinerea) is a grey fungus that af fects grapes but if it is picked at the right time of infection, especially during dry weather conditions, the results turn out to be the finest des sert
Traditional wine cellars in Hercegkut near Sarospatak Tokaj region Hungary
Tokaji wine is the abeenitHungarybroughtwine,oldestworld’sbotrytisedwhichfametodespitehavingneverconsideredwinecountry
Old bottles of white wine with famous black mold in a wine cellar in Hungary
fungus which could null the year’s production in normal circumstanc es. But, here in Tokaj, wine-mak ers, pick the grapes, and berries by berries, when it is matured and de hydrated enough to keep their sug ar level. Years and years after, it lay down in dark and wet underground cellars, where became a myrrh-like juice which then used for making wine.Tokaji wine is the world’s old est botrytised wine, which brought fame to Hungary despite it hav ing never been considered a wine country.Sommeliers would praise the fla
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major Hollywood movies, the popu larity of Rubik’s Cube continued to grow worldwide. The Rubik’s Cube is revered as one of the most belov ed toys of all time. Each year mil lions of Cubes are sold, solved, and shared among friends, families, and puzzle seekers. Annual sales of Ru bik branded cubes were said to have reached 15 million worldwide in 2008.This unusual puzzle has 43 quintillions of possible permu tations (Something like oflyfrompiredalsosistscentimetresstandardbuttionstoyou43.252.003.274.489.856.000),this:andneedtousecertainalgorithmssolveit.TherearemanyvariaoftheRubik’scubenowadays,themostbasiconeis3x3x3.Acubemeasuresclosetosixoneachsideandconof26uniqueminiaturecubes,knownas“cubies”or“cubelets.”TheMagicRevivalAftertheMagiccubepatentexin2000,manycompaniesallovertheWorld,especialfromChina,placedtheirversionsit,triggeringnewlifetothemost
The Rubik’s Cube, or Magic cube as it was named at the beginning, became one of the world’s most famous puzzles of all time CubeMagic
he Magic Cube is a three-dimensional col our-matching puzzle that’s a great mental challenge at home or on the move. Turn and twist the sides of the cube so that each of the six faces only has oneThecolour.Magic Cube is incredibly ad dictive and has fascinated fans since
Little did he know his Mag ic Cube, as he originally named it, would become one of the world’s most famous puzzles of all time! It was not mentioned to become even a toy.With Ernő Rubik's permission, businessman Tibor Laczi took a Cube to Germany's Nuremberg Toy Fair in February 1979 to popularise it. It was noticed by Seven Towns founder Tom Kremer, and soon the deal was signed to release the Magic Cube worldwide.
By the 80s, the Rubik’s Cube was a worldwide craze selling millions of Cubes every year and cementing its legacy into pop culture. Featured in The Simpsons, The Big Bang The ory, a Spice Girls music video, and
it arrived in 1980. Actually, the first Magic Cube was released in Buda pest toy shops in 1977 under the Hungarian name “Buvös Kocka.” It was a new logical toy invented three years earlier by Hungarian archi tecture professor Ernõ Rubik, who tried to explain three-dimensional spaces to his students.
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Today, Rubik’stheCube is revered as one of the belovedmosttoys of all time CULTURE
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culturelegacycementingyearCubesmillionssellingofeveryanditsintopop
Social networks and Youtube channels helped spread the new fame of the old puzzle toy. If you are not such a wunderkind and could solve the Cube for 10 seconds only, then you will need a good strategy. It’s not only that you need to dis cover the right algorithm, but you need to understand it and see how it could be applied. Many fans pub lish their own strategies and advise those who want to try them. How ever, you should not be demotivat ed by multiple failures. It is normal, and only rare talented individuals can solve it by themselves without any instructions. Also, you should not be surprised if you cannot solve the puzzle now, and you could do
of ‘80s Hungary till the nowadays. It was not that usual for a country be hind the Iron curtain to set its pop ularity in the West. Hungary did it thanks to Ernő Rubik and his inven tion. Today, everyone in the World heard about his magical cube and knew its origins in Hungary.
Some puzzles have also been cre ated in the shape of Kepler–Poinsot polyhedra, such as Alexander's Star (a great dodecahedron). Grégoire Pfennig has also created at least one puzzle in the shape of a small stel latedThedodecahedron.Rubik’sCubespread the glory
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that when you were young. It’s also normal!Theworld record time for solv ing a classic 3×3×3 Rubik's Cube is 3.47 seconds, held by Du Yusheng from China, on 24 November 2018 at Wuhu Open 2018.
Besides its presence in the pop-culture, the Magical cube is a star by itself. In 2018, a special ex hibition in Syracuse, New York, was dedicated to the Magic Cube. Ernő Rubik’s life and work were present ed to the visitors, who could even try building a giant mosaic wall to gether from Rubik’s cubes. There were robots available to be pro grammed by visitors to find their way out of a maze. One of the big gest attractions was a car-sized Ru bik’s Cube that showed how this in vention works from the inside. One of the most interesting exhibits was a spectacular golden cube made of 18 karat gold worth about two mil lion euros.
The Cube has inspired an entire category of similar puzzles, com monly referred to as twisty puzzles, which include cubes of different sizes and various other geomet ric shapes. Some such shapes in clude the tetrahedron (Pyraminx), the octahedron (Skewb Diamond), the dodecahedron (Megaminx), and the icosahedron (Dogic). Sompuz zlee, such as Rubik's Snake and the Square One, change shapes.
By the 80s, the Rubik’s Cube was a worldwide craze
famous puzzle. The new wave of Cube’s popularity fleshed the Globe, which brought again The World Ru bik’s Games Championship held in Toronto with 83 participants. It was the first such tournament after 1982, when the Magic Cube first con quered the World.
TOURISM
During the long-lasting Ottoman occupation of Serbian lands, many scholars found their peace for work in Hungary. They were influenced by Hungarian, and Central Europe an culture and helped Serbia to keep its culture despite the Ottoman’s oc cupation. While living in Hungary, Serbs contributed to local commu nities having a strong influence and culture in general.
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he presence of Serbs in Hungary dates from the Middle Ages, not too long after Arpad came with Magyar tribes and settled the Pannonian basin. During that time, Hungarians and Serbs developed strong relations by blood and friend ships thanks to a mutual struggle to cultivate the empty land and defend themselves from the invaders.
The Dormition of the Mother of God Monastery in Ráckeve is the oldest monastery in Hungary and one of only two monasteries in the Buda Eparchy of the Serbian Or thodox Church. It is located 40 km south of Budapest, on the Danube river island of Csepel, in the center of the Ráckeve village.
RÁCKEVE
The number of the Serbian com munity in Hungary is not that signif icant today, as there are slightly more
The oldest evidence of Serbians in Hungary is placed just south of Budapest in the village of Ráckeve (Srpski Kovin).
Serbians have been recognized as one of the most important national minorities of modern Hungary thanks to their historical influence and friendship with the Hungarian majority
Serbs Hungaryin
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than 10.000 members. However, they have been recognized as one of the most important national minorities of modern Hungary thanks to their historical influence and friendship with the Hungarian majority. Lórév (Serbian: Lovra), a small village on Csepel Island south of Budapest is the only settlement with a Serbian majority today with only 200 Serbs.
Most Serbians today live in Bu dapest where they have their own church of Saint George (Crkva Sve tog Georgija) which is part of Buda’s Eparchy of the Serbian Orthodox Church. This church is very central ly located only a few steps from the main pedestrian Vaci street.
After the Turks besieged and con quered the fortified Smederevo for the first time in 1439, they crossed the Danube twice, devastated and looted Kovin and all the surrounding settlements. Those who escaped in time headed deep into Hungary and reached the island of Csepel on the Danube. On October 10, 1440, King Vladislav of Hungary ceded the Late Gothic church with chapels and bell tower to the settlers of Kovin, and with it, in all probability, a corresponding part of the royal land holdings.
GRÁBÓC
Belvaros, a very central, and the most beautiful Budapest quarter was popular amongst the Serbs dur ing the XVIII and XIX centuries. The street where St. George’s church is named Szerb utca (Serbian street)
When Ottomans started to in trude from the South, Hungarians relied on Serbians to defend their land. Some historical evidence testi fies that land between Belgrade and Kragujevac, today Šumadija, was completely vacant due to Serbs run ning away from the Ottoman inva sion to neighboring Hungary.
tine Catholic monastery from the 14th century, the remains of which can still be seen near the existing monastery cemetery. The current Grabovac monastery was founded in 1587 by the monks of the Dragović monastery in Dalmatia.
founder of the monastery is men tioned as Queen Jelena, the daugh ter of Uroš I, Grand Prince of Serbia, and the wife of the Hungarian king Bela II. At the time when the mon astery was founded, Jelena ruled Hungary on behalf of her minor son Geza II (1141–1161).
According to preserved tradition, often neglected, this monastery is a medieval legacy and was created in the first half of the XII century. The
Grábóc
Saint George
Grabovac Monastery (Hungarian: Grábóc) is one of the two existing monasteries of the Serbian Ortho dox Church in present-day Hunga ry. The monastery is located in Tol na County, south of Budapest, near Szekszárd in Central Hungary. The Grabovac Monastery was once one of the religious and cultural centers of the Serbs in Pannonia, and today it is one of the main gathering places of the Serbian community. On the site of the Grabovac mon astery, there used to be a Benedic
BELVAROS IN BUDAPEST
The Dormition of the Mother of God Monastery in Ráckeve is the ChurchOrthodoxtheEparchyinmonasteriesoneHungarymonasteryoldestinandofonlytwotheBudaofSerbian
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of Kosovo, many Serbs emigrated to Szeged where this city became the seat of the Eparchy of Bačka then. The fifth church was built in Szeged at Dom Square after four churches at the same place were destroyed. St. Nich olas church is designed in rococo style with many icons. Serbian ba roque painter Jovan Popović made the part of the iconostasis, with the Temptation of Christ as the most beautiful icon there.
The Serbian Orthodox church art collection in Szentendre occupies a special place among Hungary’s mu seums and art collections due to the layered content and wealth of funds. It was founded in 1964 as a museum of the Serbian Orthodox Diocese of Buda, whose basis was the bishop's treasury in Szentendre. Expanding that foundation, it developed by col lecting significant artistic treasures created over centuries and found in the temples of the Diocese.
Due to its historic architecture and easy rail and river access, it has become a popular destination for tourists in Budapest. Travel agen cies from Serbia always include vis its to Szentendre for tourists when coming to Budapest.
Szentendre region
While living in Hungary, generalcultureinfluencehavingcommunitiestocontributedSerbslocalastrongandin
village Hercegszántó (Santovo), just next to the Serbian border.
and many beautiful houses around were inhabited by Serbian poets, writers, artists, and noblemen.
By collecting, various liturgical objects, the Collection in Szenten dre gradually grew into a valued, and in terms of variety and number of objects, an immense treasury of Orthodox church art antiquities in Hungary. The primary fund of the Collection, which mainly includes artistic creations from the 18th cen tury, provides a broader insight into the complex processes of transfor mation and flourishing of Serbian art in this most significant period of the Buda’s AcquaintanceEparchy.with that period in Szentendre is facilitated by the indispensable holdings of the Dio cese Library and Archives, which form together with the Church Art Collection and expand our knowl edge about the presence of Serbian art and culture in Hungary for sev eral centuries.
During the Great Turkish War, Serbs were invited to emigrate to Hungary to evade the Ottoman Em
pire. Because of this invitation, there was a mass emigration of Serbs in 1690 to the Szentendre region. These Serbs left enduring traces on the townscape and its culture.
Famous Serbian painter Petar Dobrović was born in Pecs. He went to High school there, and later was a student at the Budapest Art school and University. Unfortunately, there is no any evidence of Dobrović’s life in Pecs Aftertoday.theBattle
One of the key figures of the Hun garian Revolution of 1848, poet Sán dor Petőfi, was born Aleksandar Petrović, in a Serbian and Slovak family. He is considered Hungary’s national poet and was the author of National Song (Nemzeti Dal) which is said to have inspired the revolu tion in the Kingdom of Hungary.
Serbian presence in Hungary could be traced out of Budapest as well. All major cities, especially in the South, like Szeged and Pécs.
The oldest part of the town where the Cathedral was erected in 1521 was named Belgrade quarter af ter the Serbian immigrants. There were seven Serbian churches and a school in Szentendre, but today only four are still part of Buda’s Eparchy of the Serbian Orthodox Church. The Church of St. Paul and St. Pe ter, known earlier as Ćirpovačka Church, today is the Greco-catho lic church, while Zbeg’s Church is now catholic. Reformists took over the Hopovo’s Church, but iconosta sis from it had been removed in the
One of the most popular ther mal baths in Budapest, Rác fürdő, is named after an old medieval name for Serbs from their country Rascia (Raška) or Rácország in Hungarian.
The Cathedral Church of Dormi tion of the Mother of God, known as Belgrade’s Church, originally was a stone church built in 1690. There was a Serbian school as well. The crypt keeps the remains of seven bishops and archbishops. More than four hundred graveyards, mainly from the XIX century, are in the ca thedral’s yard.
Szeged
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