Hungary to challenge EU plans to ban Russian oil and gas in court

Hungary will challenge the RePowerEU plan that would ban member states' imports of Russian oil and gas from 2027 before the European Court as soon as it is formally adopted, Minister of Foreign Affairs and Trade Peter Szijjarto said in Brussels on December 3.

The plan would "undermine Hungary's energy security", exposing the country to a monopoly situation and causing household energy bills to triple, according to Hungary’s chief diplomat.

The agreement between the EU Council and the European Parliament foresees a gradual, legally binding ban on the import of Russian liquefied natural gas (LNG) and pipeline gas. The full ban on LNG imports is to start on January 1, 2027, and the ban on pipeline imports is to take effect on November 1, 2027 at the latest, in accordance with the EU's 19th sanctions package.

Szijjarto noted that Hungary had recently obtained an exemption from US sanctions on Russian energy, while getting a guarantee in Moscow of continued, uninterrupted energy deliveries.

"Besides those agreements in Washington and Moscow, we knew we would have to fight in Brussels, too. That battle is hotting up. Brussels is finalising a decision that would put an end to Hungary's energy security and cheap utilities bills, while heightening its exposure," he said.

He described the decision as "completely contrary" to the EU's founding treaty, which grants member states competence over national energy policy, and called it a sanctions measure "presented under the disguise of trade policy" to circumvent a lack of unanimity. The latter option would not require a unanimous vote from member states, thus neutralising Budapest’s veto power.

Szijjarto also noted that the EC disregarded its own impact study showing the risks the embargo would have for Central Europe, referring to a report highlighting the impacts of the phase-out of Russian energy on landlocked countries like Hungary and Slovakia.

After talks with his Slovak counterpart, Szijjarto said Bratislava will also challenge the RePowerEU plan in court and would coordinate legal preparations underway with Budapest.

In a press briefing broadcast live on social media, Hungary’s chief diplomat also called on Ukraine to cease its attacks on Hungarian energy security, after being briefed on the attacks on the Druzhba pipeline by Russia's deputy energy minister.

He hinted that Hungary could retaliate by cutting energy exports to Ukraine if attacks continue.

Currently, 51% of Ukraine's electricity imports and 58% of its natural gas imports come from Hungary, as does a significant share of its crude imports, Szijjarto said, adding that "I recommend that the Ukrainian decision-makers take this into consideration when they decide on attacking the oil delivery route to Hungary."

Hungary's crude supply is secure, Prime Minister Viktor Orban said in a Facebook post after talks with MOL executives, in spite of the Ukrainian attack on the Druzhba pipeline.

European Commission President Ursula von der Leyen outlined plans to use billions of euros from frozen Russian assets to support Ukraine over the next two years on December 3, but Belgium objected, citing serious financial and legal risks. Most of the €210bn in immobilised Russian assets in Europe is held in Belgium. EU leaders will discuss the proposal at their December 18 summit in Brussels.  The approval of the measure would require the vote of all 27 member countries, and Hungary has consistently blocked aid to Ukraine.

In August, Hungary filed a lawsuit at the EU’s General Court in Luxembourg against the European Council and the European Peace Facility (EPF), challenging a decision to channel billions of euros from the proceeds of frozen Russian central bank assets to support Ukraine’s military. 

Hungary’s objection has forced many capitals to pursue bilateral aid channels for Ukraine, sidelining the EPF's role as the bloc's principal military assistance mechanism. The foreign minister did not elaborate on this topic in his live feed.