Hungary to challenge EU ban on Russian gas imports at European Court

Hungary will challenge the EU's ban on Russian gas imports from 2027 at the European Court of Justice, Prime Minister Viktor Orban announced on Facebook on January 26.

The European Council formally adopted a regulation that provides for a gradual ban on imports of Russian LNG and pipeline gas into the European Union, effectively requiring Hungary to cancel its 15-year deal with Gazprom, signed in 2021, for the delivery of 4.5 bcm of gas annually. Hungary and Slovakia voted against it, while Bulgaria abstained, but the regulation was adopted by a qualified majority, leftist daily Nepszava writes.

"Brussels' decision today would ban Russian gas imports from 2027, just as the [opposition] Tisza Party wants," Orban said without backing up his claim. The government has accused Tisza Party politicians of working against Hungarian interests.

Orban called the measure "an obvious sanction" that needed unanimity for adoption. "We must defend our utility price cuts and caps. There can be no compromise on this!" he added.

The government claims the EU bypassed its own rules with a "legal trick" that disguises a sanctions measure as a trade policy decision, which does not require the votes of all members

"Banning Hungary from buying oil and gas from Russia goes against our national interest and would significantly increase energy costs for Hungarian families," Foreign Minister Peter Szijjarto announced on January 26, adding that as the decision on adopting REPowerEU becomes official, Hungary will submit its claim to the Court of Justice of the EU.

Since the war, Budapest has deepened its economic ties with Moscow, undermining Brussels’ strategy to deprive the Kremlin of revenues to fund the war. Gas purchases from Russia reached record levels in 2025, drawing criticism from the EU and local experts. The government’s claim that energy prices would triple is widely exaggerated.

Energy expert Attila Holoda said that the lack of transparency surrounding long-term energy contracts, such as the 2021 agreement between the state-owned MVM Group and Russia’s Gazprom, remains a major concern because the price terms remain confidential. The involvement of potential intermediaries in the suppl chain, whose names remain unknown,  may be inflating consumer costs and increasing corruption risks.

He argued that, contrary to the government's claims, Hungary is not paying less for Russian gas than other countries, as the long-term contract gas probably tracks market prices with a delay of a couple of months. Every payment made for Russian energy resources ultimately supports Moscow’s war effort, either directly or indirectly.

Orban, facing a tight upcoming election, maintains that Russian energy supplies remain essential to keeping household energy prices low, a key factor for his re-election prospects. He argues that maintaining access to affordable Russian gas and oil is critical to protecting Hungarian families from rising utility costs.

However, as many economists have pointed out, the scheme's viability depends solely on the budget's fiscal leeway. The government has not provided specific figures for that, but it is estimated that hundreds of billions of forints are being spent from the budget to support the artificially low household energy prices for households. However, household, which consume over the national average pay significantly higher prices. 

According to the EU plan, member states must prepare national plans by March 1, 2026, to diversify gas supplies and define ways to replace Russian gas. Companies must notify the authorities and the Commission of any remaining Russian gas contracts, and EU countries that continue to import Russian oil must also submit diversification plans.

The regulation sets penalties for non-compliance, including fines of at least €2.5mn for individuals and €40mn for companies, or up to 3.5% of a firm’s global annual turnover.

EU data show that oil imports from Russia have fallen below 3% by 2025 due to existing sanctions, while Russian gas is still estimated to account for about 13% of EU gas imports, representing more than €15bn annually, according to Nepszava.