Hungary views the operations of its oil company MOL in Russia as highly successful and expects further expansion, Foreign Minister Peter Szijjarto stated after meeting Russian Deputy Prime Minister Alexander Novak in Moscow on March 26.

Energy cooperation between the two countries has withstood the test of the most difficult time, according to Hungary's chief diplomat, who streamed live a short recap of his meetings on social media from Red Square.

"We also welcomed oil and gas company MOL's successful extraction activities in Russia, which provides a sufficient basis for the company to increase its market presence in the future," he added.

Hungary last year imported record volumes of natural gas from Russia, adding that daily gas deliveries exceed 20mn cubic metres this year and crude oil imports have already exceeded 1.25 tonnes.

Szijjarto also said his negotiating partners had assured him that Russia will continue to meet all of its obligations." Let’s be clear: Hungary’s energy supply would not be secure without Russian energy," the minister noted.

The agreement between the United States and Russia which bans strikes on infrastructure delivering energy to Hungary is in line with Hungary’s national interests, as it reduces risks to energy security, according to Szijjarto.

The minister also welcomed a five-point list covering the infrastructure that falls under the 30-day ceasefire, which includes the oil and gas pipelines linking Russia and Hungary.

In news related to MOL, Erste has upgraded MOL's stock rating from "reduce" to "accumulate" and raised the price target from HUF2,800 to HUF3,360, business online VG.hu wrote. The move is driven by lower domestic production taxes and reduced geopolitical risks amid hopes for a Russia-Ukraine ceasefire.

MOL and the Hungarian government have agreed to restore mining royalties to previous levels, with the state taking 18-20% of domestic production. Combined with recent hydrocarbon discoveries, this is expected to boost profits.

The company will decide on dividends at the April 24 AGM, with Erste projecting HUF250 per share (€0.62), in line with last year. This translates to an 8.4% dividend yield at current prices.

MOL shares rallied 2% on the news to HUF2,992 on Wednesday, March 26 propelling the benchmark BUX index to reach a new historic high. Hungary's leading energy group saw its shares rise 10%, underperforming the BUX, up rising 16% year to date.