Hungary to launch legal challenge after EU agreement on ending Russian gas imports

Budapest contests the European agreement to ban Russian natural gas imports by 2027, claiming the measure is incompatible with its economic interests and the European Union's founding treaties.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

Hungary has announced its intention to challenge before the Court of Justice of the European Union the provisional agreement reached by Brussels to gradually eliminate imports of Russian natural gas. The decision, made under the REPowerEU strategy, foresees the end of Russian liquefied natural gas (LNG) purchases by the end of 2026, followed by a full phase-out of pipeline gas imports by autumn 2027.

European Commission President Ursula von der Leyen described this measure as a step towards the European Union’s complete energy independence from Russia. She stated that EU payments to Moscow for fossil fuels had dropped from €12bn ($14bn) per month at the beginning of the war in Ukraine to €1.5bn per month today, with the aim to bring it down to zero.

Budapest rejects regulatory constraint

Hungarian Minister of Foreign Affairs Peter Szijjarto called the measure “unacceptable” for his country, highlighting that landlocked Hungary is structurally dependent on Russian pipeline deliveries. He announced that once the plan is formally adopted, a legal challenge will be filed against the decision. According to him, the regulation is a disguised sanction against Moscow rather than a policy based on commercial rationale.

Prime Minister Viktor Orban reaffirmed that energy supplies from Russia are “vital” for Hungary. This stance aligns with Budapest’s position since the start of the conflict in Ukraine, which contrasts with the prevailing direction among EU member states.

Ongoing divisions within the EU

Slovakia has also expressed concerns about the economic impact of turning away from Russian supplies, though it has not announced any legal action at this stage. The regulation adopted by the European Commission is legally binding and requires formal approval by the European Parliament and member states.

The Kremlin responded by claiming that this decision would harm the competitiveness of the European economy. Spokesman Dmitry Peskov stated that Europe would become reliant on gas sources that are more expensive than Russian gas.

Geopolitical context and parallel measures

Since Moscow’s invasion of Ukraine in February 2022, Brussels has sought to reduce Russian energy flows to the EU, viewed as tools of geopolitical influence. At the same time, Washington has expanded sanctions against Russian energy firms, including Rosneft, LUKoil, and Gazpromneft.

EU Energy Commissioner Dan Jorgensen welcomed the decision, stating that the Union had chosen energy security. However, certain US exemptions for Hungary remain in effect, according to statements from the Budapest government.

The Australian government will require up to 25% of gas extracted on the east coast to be reserved for the domestic market from 2027, in response to supply tensions and soaring prices.
Baker Hughes will deliver six gas refrigeration trains for Commonwealth LNG’s 9.5 mtpa export project in Louisiana, under a contract with Technip Energies.
Shanghai Electric begins a combined-cycle expansion project across four Iraqi provinces, aiming to boost energy efficiency by 50% without additional fuel consumption.
Zefiro Methane, through its subsidiary Plants & Goodwin, completes an energy conversion project in Pennsylvania and plans a new well decommissioning operation in Louisiana, expanding its presence to eight US states.
The Council of State has cancelled the authorisation to exploit coalbed methane in Lorraine, citing risks to the region's main aquifer and bringing an end to a legal battle that began over a decade ago.
Japanese power producer JERA will deliver up to 200,000 tonnes of liquefied natural gas annually to Hokkaido Gas starting in 2027 under a newly signed long-term sale agreement.
An agreement announced on December 17, 2025 provides for twenty years of deliveries through 2040. The package amounts to 112 billion new Israeli shekels (Israeli shekels) (NIS), with flows intended to support Egyptian gas supply and Israeli public revenues.
Abu Dhabi’s national oil company has secured a landmark structured financing to accelerate the development of the Hail and Ghasha gas project, while maintaining strategic control over its infrastructure.
U.S.-based Sawgrass LNG & Power celebrates eight consecutive years of LNG exports to The Bahamas, reinforcing its position in regional energy trade.
Kinder Morgan restored the EPNG pipeline capacity at Lordsburg on December 13, ending a constraint that had driven Waha prices negative. The move highlights the Permian’s fragile balance, operating near the limits of its gas evacuation infrastructure.
ENGIE activates key projects in Belgium, including an 875 MW gas-fired plant in Flémalle and a battery storage system in Vilvoorde, to strengthen electricity supply security and grid flexibility.
Hungary has signed a contract with US company Chevron to import 400mn m³ of LNG per year, while maintaining a structural dependence on Russian gas through a long-term agreement with Gazprom.
Chevron Australia awards Subsea7 a major contract for subsea installation on the Gorgon Stage 3 project, with offshore operations scheduled for 2028 at 1,350 metres depth.
Ovintiv has entered into an agreement with Pembina Pipeline Corporation to secure 0.5 million tonnes per annum of LNG liquefaction capacity over 12 years, strengthening its export outlook to Asian markets.
TotalEnergies has completed the sale of a minority stake in a Malaysian offshore gas block to PTTEP, while retaining its operator role and a majority share.
The European Union will apply its methane emissions rules more flexibly to secure liquefied natural gas supplies from 2027.
Venezuela has ended all energy cooperation with Trinidad and Tobago after the seizure of an oil tanker carrying crude by the United States, accusing the archipelago of participating in the military operation in the Caribbean.
National Fuel has secured $350mn in a private placement of common stock with accredited investors to support the acquisition of CenterPoint’s regulated gas business in Ohio.
GTT appoints François Michel as CEO starting January 5, separating governance roles after strong revenue and profit growth in 2024.
The United States is requesting a derogation from EU methane rules, citing the Union’s energy security needs and the technical limits of its liquefied natural gas export model.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.