BBJ: How do you rate bilateral relations between Romania and Hungary in terms of trade and politics?

Gabriel Şopandă: The relations are both complex and continually evolving. Hungary is Romania’s third-largest trade partner by value, with 2022 marking a record high of EUR 15 billion. Although there was a slight decrease to EUR 13.3 bln in 2023, trade rebounded in 2024 with a 1.5% increase. Since Romania’s full integration into the Schengen Area in January, the first two months have seen a remarkable 15% increase in bilateral trade, reaching approximately EUR 2.2 bln in February. Among the various economic sectors, automotive trade accounts for approximately 22% of the total; however, activity is observed across all industries, in both exports and imports. Romania is also a key trade partner for Hungary, ranking as the second-largest export destination for Hungary. Over the past decade, the trade volume between the two countries has more than doubled.

Within the business community, Romania is host to more than 15,000 Hungarian-owned companies, while approximately 7,000 Romanian-owned businesses operate in Hungary. The majority of these fall within the SME and microenterprise segment, although both countries are home to large and well-established firms. In Romania, notable Hungarian companies include MOL, Gedeon Richter, Bonafarm Group, Indotek, Hell Energy, various banks, and major investors in agriculture, construction (for example, Kész Group), hospitality, and real estate. In Hungary, Romanian investments are led by eMAG, the country’s largest online retailer, which has invested more than EUR 300 million, as well as TeraPlast Group, the largest polymer producer in Central and Eastern Europe, operating three production facilities. Other Romanian investments are found in logistics, auto parts (Autonet Group), car rental (Autonom), healthcare (Medlife), jewelry (Teilor), and industries such as hospitality, facility management, construction, furniture, and fast food.

In collaboration with the embassy’s trade office, we have organized numerous industry-specific events and economic missions in both Romania and Hungary over the past few years, aimed at strengthening the ties between our business communities. Our efforts are paying off, as we now notice at least 4-5 new Romanian companies each month expressing interest in the Hungarian market, either for investment or export and 3-4 Hungarian companies considering Romania as a potential investment destination. We also encourage existing investors to expand and develop their businesses in both countries and motivate Hungarian companies to look beyond their established markets in western Romania, exploring opportunities in eastern and southern regions. For many Romanian companies, Hungary serves as a gateway to international markets, providing valuable experience.

The trade relations between Romania and Hungary are continuously evolving, with significant growth potential due to their proximity and shared business practices. I would describe it as a natural economic partnership, one of the most productive and seamless relationships you can have with a neighboring country.

BBJ:  What are the most significant growth areas in imports and exports?

GS: Automotive industry-related exports and imports grow every year, but we also see an increase in Romanian exports of raw materials, such as aluminum. Meanwhile, a substantial portion of our imports consists of semi-finished and finished products. The growth rate fluctuates both annually and, at times, even monthly. However, the automotive industry consistently ranks in the top two, followed by mineral products (such as oil, salts, and others) and chemicals (including pharmaceuticals, drug components, and various other products). Additionally, the food industry remains among the top five for both exports and imports.

BBJ:  Are there any new areas where you expect trade to expand?

GS: I am confident that all areas of trade hold growth potential. The development of our trade relations must be inclusive, meaning that any Romanian, Hungarian, or foreign businessperson with a legitimate interest in doing business should have the opportunity to contribute to the expansion of bilateral trade. In today’s technology-driven world, it is essential to leverage the latest opportunities to ensure that every citizen has access to the best services and goods available. The COVID-19 pandemic and the geopolitical situation have reshaped the way business is conducted. Companies are increasingly focusing on doing business closer to home, which presents a significant opportunity for us. With Bucharest just over one hour away by plane or around 10 hours by car from Budapest, Romanian entrepreneurs are well-positioned to achieve successful investments in Hungary. Supplying high-quality goods and services to the Hungarian market can significantly enhance overall trade.

BBJ: In 2022, you spoke at an Energynomics conference about the need for the two countries to cooperate better on energy. Are you happy with the progress since then?

GS: I would say yes, as there is ongoing cooperation at both governmental and private levels. We have a gas interconnector with a capacity of 2.6 billion cubic meters, which could be expanded soon. Electricity is both exported to and imported from Hungary, and professionals from both countries maintain a continuous dialogue to enhance existing partnerships and cooperation. In short, there is consistent progress.

But when it comes to cooperation at the governmental level, I would like to emphasize the excellent partnership we have in road and rail infrastructure. The year 2015 marked the first border connection at the highway level, and 2020 brought the second. Today, we have already agreed on two additional highway-level border connections. Significant progress has been made on both sides of the border in this area. Hungary has advanced with its highway construction closer to the border, and Romania has made similar strides. New cooperation has also emerged in rail infrastructure, both through constructing new lines and the upgrading of existing ones. Additionally, we have a bilateral Romanian-Hungarian working group on road infrastructure that meets at least three to four times a year, along with several technical subgroups that hold regular discussions. I believe that within the next three to four years, we will have a comprehensive road network connecting the two countries, benefiting both citizens and businesses by facilitating trade.

BBJ: Talking of energy, Hungary has long hoped to benefit from Romania’s Black Sea Neptun Deep gas reserves, an obvious alternative to Russian supplies. When might gas begin to flow, and will Romania supply Hungary?

GS: As Romania’s Minister of Energy Sebastian Burduja mentioned this March in Budapest, drilling has started, and we hope that within a few years, we will be able to export gas to Hungary as well. With the Neptune Deep gas project, Romania has the opportunity to become a net gas exporter, supplying gas not only to Hungary but also to other countries in the region. Earlier, we discussed new areas where exports can expand; this is an example of a promising new sector for export growth.

BBJ: I understand you are nearing the end of your term here. Have you enjoyed the posting? What have been the highlights and the challenges, and what is next for you?

GS: I truly enjoyed my time working in Budapest. Serving in a neighboring country, with both of us being NATO allies and EU member states, has been a privilege and a valuable opportunity for a career diplomat. Romania and Hungary share so much, as evidenced by the strong connections in fields such as business, art, and culture, among others. Of course, there were a few challenges, but most of them were positive and enriching.

One of the highlights was the official visit of the then Romanian President Klaus Werner Iohannis to Budapest in October 2023, the first such in 14 years. During this visit, he reaffirmed Romania’s commitment to engaging constructively with Hungary, based on the core bilateral agreements that underpin our relationship, to benefit all our citizens, regardless of ethnicity.

Since my current posting has already lasted nearly six months beyond the typical four-year diplomatic term, I concentrate all my efforts on finalizing as many of the projects I launched and worked on during this period as possible.

This article was first published in the Budapest Business Journal print issue of June 27, 2025.