ZH
IT
DE
Hungary fights for Russian gas, challenges Brussels’ REPowerEU regulation
Hungary has challenged the Brussels REPowerEU regulation banning Russian energy imports in the European Court of Justice, but in order to pursue the case, the ruling parties must win the election, Foreign Minister Péter Szijjártó said on Monday.
Background: Hungary’s Russian gas imports since the outbreak of the war
Since the outbreak of the Russia–Ukraine war in February 2022, Hungary’s natural gas imports from Russia have not declined in line with the broader European Union trend. While many EU member states sharply reduced their reliance on Russian gas following the invasion, Hungary has largely maintained — and in some periods increased — the volume of gas purchased from Russia.
Hungary entered the war period with a long-term supply contract signed in 2021 with Gazprom, covering approximately 4.5 billion cubic metres (bcm) of gas annually. After 2022, deliveries continued primarily via the TurkStream pipeline route through Serbia, which became increasingly important as transit via Ukraine declined. In several post-war years, reported pipeline deliveries to Hungary exceeded the contracted minimum volume.
Available energy and trade data indicate that Russia has remained Hungary’s dominant gas supplier, accounting for roughly 80–95 per cent of total gas imports depending on the year and methodology used. In relative terms, Hungary’s dependence on Russian pipeline gas has therefore remained high, even as overall EU imports from Russia fell dramatically between 2022 and 2024.
In absolute terms, Hungary imported similar or higher volumes of Russian gas in the years following the invasion compared with the immediate pre-war period. This was partly due to continued long-term contractual obligations and partly because alternative supply routes — such as LNG or non-Russian pipeline sources — expanded more slowly in Hungary than in Western and Northern Europe.
The result is a clear divergence between Hungary and most EU countries: while the EU as a whole reduced Russian gas imports by more than half after 2022, Hungary effectively preserved its existing supply structure, prioritising price stability and physical security of supply. Although Budapest has announced diversification efforts with other suppliers, Russian gas has remained the backbone of Hungary’s energy system since the start of the war.
According to critics, the past four years should have been sufficient for Hungary to largely resolve its energy import issues by finding other sources, or at least to take serious steps in that direction, as neighboring countries have done. However, the government has used this time to repeat that there is no other option for Hungary than Russian gas, instead of implementing reforms and finding appropriate solutions.
REPowerEU rules
According to Anadolu, the EU formally adopted the REPowerEU rules on Jan. 26, which aim to gradually phase out imports of Russian pipeline gas and liquefied natural gas (LNG) and include monitoring obligations, supply diversification requirements, and penalties for non-compliance.
Under the new rules, imports of Russian gas will start to be restricted six weeks after the regulation enters into force, while existing contracts may continue during a transition period. A full ban on Russian LNG imports will apply from early 2027, and pipeline gas imports will be prohibited from autumn 2027.
EU member states will also be required to verify the origin of gas before allowing its entry and notify national authorities and the European Commission of any remaining contracts with Russia.
Non-compliance carries fines of at least €2.5 million ($3 million) for individuals and €40 million ($47.5 million) for companies, or up to 3.5% of global annual turnover.
“There are only more expensive and less reliable solutions”
According to a ministry statement, the minister said the decision prohibiting European Union member states from purchasing Russian crude oil and natural gas has now been officially published.
“I would like to make it clear that, from Hungary’s point of view, there are only more expensive and less reliable solutions.
Without Russian crude oil and natural gas, neither the security of the country’s energy supply can be guaranteed, nor is it possible to maintain the results of the utility price cuts,” he pointed out. “We will protect the Hungarian people, we will protect Hungarian families, and we will not allow Brussels to kill the utility price cuts.
We will continue to base Hungary’s energy security and the maintenance of utility price cuts on cheap Russian crude oil and natural gas,” he continued.“
He then announced that, to this end, the Hungarian government had filed a lawsuit with the European Court of Justice, requesting that the measure be annulled.
Péter Szijjártó explained that their petition refers to three important points. First, Brussels had no right to make such a decision, as the import of energy sources can only be prohibited by sanctions, which would require a unanimous decision. “It’s a joke that they adopted a measure disguised as trade policy,”
Our article will expalin you the monetising the Orbán-Putin friendship: the myth of cheap Russian gas in Hungary
The second argument is that the EU does not even have the power to take such a measure, as the basic treaty clearly states that each member state can decide for itself from whom and what energy sources to purchase.
“Thirdly, the European Union has a rule called the ‘principle of energy solidarity’. This basically means that the energy supply of EU countries must be secure. Obviously, this decision by Brussels violates this principle, at least in the case of Hungary,” he emphasized.
The minister believed that the lawsuit would probably last between one and two and a quarter years. “This lawsuit must therefore be pursued to the end. However, in order to do so, we must win the election, as it is clear that the other side is lined up with experts from the international energy world who have previously lobbied for us to stop buying cheap energy from Russia and instead buy it at a higher price from Western companies,” he said.
“So it is obvious that if the other side wins the election, this lawsuit will not go ahead, and then we will see a threefold increase in overhead costs. I suggest we don’t try this,” he concluded.
If you missed it: Hungary’s MOL to acquire majority stake of Serbia’s NIS from Russia: what this means for the region
Following pressure from Trump Modi has agreed to stop importing Russian oil to India. Hungary is next.
No, Dear Larry – Hungary is not next.
Our president already tried that with Orbán and it went nowhere.
As to whether or not Modi has actually stopped importing Russian gas to India, nobody knows for sure.
That does not sound like Modi.
Stop pretending that you are American and again to everyone beware posts from anyone who lies about their identity.
Dear Larry – stop pretending to be Canadian.
You’re MI6, and in London.
Beware everybody!
@mouton has troll farm written all over him: fake profile, rage-bait, and Kremlin talking points dressed up as heartland America. Don’t take the bait!
Oh, Larry, you are MAGA now?
Well, it doesn’t matter to you, as long as conflicts are escalated, and innocents are murdered, right mr neocon?
The thing is, Modi lied. It’s so obvious, Trump would say the same, if he wasn’t obsessed with media articles.
Hungary already got an exception from Trump. So Hungary being next is frankly retarded.
E.U.’s big idea re “REPowerEU” (who comes up with this stuff!?) is to build a giant battery of windmills in the North Sea.
Screw marine and avian wildlife, screw the African child slave labor involved in producing those things, screw the fact that it’s all non-recyclable, screw its unreliability, screw its inefficiency, screw its unprofitability… They are going to build it anyway, to no opposition from N.G.O.s and nonprofits, with our money.
That is E.U.
Thank God for Orban and for Russian gas!
Characterizing REPowerEU as a project built with “Hungarian money” ignores the complex pooling of EU resources and the specific localized grants Hungary receives for its own domestic energy transition.
In fact, Hungary has its own allocated share of REPowerEU funds (approximately €700 million in grants plus loans as of the last major update) specifically to modernize its own energy grid and improve energy efficiency within its borders.
WHY?
The premise that Hungary is directly funding North Sea wind farms through REPowerEU is a misunderstanding of how the EU funding mechanism works.
While REPowerEU aims to reduce dependence on Russian fossil fuels and does promote renewable energy projects like the North Sea wind expansion (which involves countries like Belgium, Denmark, Germany, and the Netherlands), the funding comes from the European Commission’s Recovery and Resilience Facility (RRF) and the auctioning of allowances from the Emissions Trading System (ETS).
Hungary, like all member states, contributes to the overall EU budget, but funds are not earmarked directly from Hungarian taxpayers to build infrastructure in the North Sea.
Excellent comment, Dear Michael!
Relying on energy sourced from a dictatorship regime is the worst choice for humanity.
Luckily most countries have stopped funding the war-mongering imperialist Russia.
As previously written in several articles, also here in DNH, it is very doubtful that Russian gas is cheaper since Hungarian government is keeping all price information as confidential secrets.
I will repeat something here. Putin knew that he was planning to invade Ukraine when he signed his 15 year agreement on Sep 27th 2021. His purpose was to secure a 15 year revenue stream to help fund his war which he launched a few months later in Feb 2022. Hungary became a source of funds for Russia’s war.
Orban himself probably an invasion was in the cards and certainly Hungarian intelligence was keeping him informed. Natural gas deliveries to Europe were already being reduced by Russia to reduce inventories prior to his winter campaign. Orban was happy to oblige the aggressor state with a long-term contract.
Thanks, I appreciate your comments supported by verifiable facts and data.
Cant say that about some regular commentators here…
Unlike you, real people understand, that without paper money you loose nothing. Without energy, you literally die.
Hungary pursued the new 15 years agreement, not Russia. Russia obliged, because they thought correctly, this causes Hungary to try and stop Europe from escalating into a nuclear war.
It’s not that complicated.
Mark – “lose” as opposed to “win”, “loose” as opposed to “tight”. Don’t worry, at least you are bi-lingual.
Relyin on the USA exclusively, which openly stated they want to partition one of your members is a far worse choice then using Russian gas.
Russia did never say anything about taking over EU territory.
Who said anything about “relying on USA exclusively”? Not me nor the article.
You are again making things up as you go.
Despite political rhetoric suggesting Hungary receives “cheap” gas, analysts have frequently pointed out that the price tracks the market. The primary benefit is supply security rather than a massive discount against the market rate. Trade data from the Hungarian Central Statistical Office (KSH) in previous years has shown that the average price paid by Hungary often aligned closely with, or sometimes exceeded, the average TTF price due to the timing of the lag.
WHY?
Based on the long-term contracts established between Hungary and Russia (primarily Gazprom) prior to 2026, the pricing mechanism for Russian natural gas delivered to Hungary is distinct from the spot market prices often cited in broader European news.
Here is a breakdown of how that pricing structure works and the context surrounding it.
The Pricing Formula
Unlike many other European nations that moved toward spot-market pricing (paying the current daily rate), Hungary’s gas purchase agreement with Russia—specifically the 15-year deal signed in September 2021—uses a time-lagged formula.
Reference Point: The price Hungary pays is indexed to the Dutch Title Transfer Facility (TTF) gas price, which is the benchmark for European natural gas.
The Time Lag: Crucially, the price is not the current TTF price. Instead, there is a delay mechanism (often reported as a lag of one to two months).
Example: The price Hungary pays in February 2026 would likely be based on market averages from late 2025 or January 2026.
Currency: While the formula is based on market rates, the actual financial transfers have historically been scrutinized for currency conversion requirements (often involving conversions to Rubles via Gazprombank, per 2022 decrees).
Cost Implications
This formula has created a distinct economic dynamic for Hungary compared to its neighbors:
Volatility Delay: When gas prices spike suddenly (as they did in 2022), Hungary does not feel the pain immediately; the cost increase hits a few months later. Conversely, when market prices crash, Hungary continues paying higher rates for a few months until the formula catches up.
Volume and Delivery
The framework for these prices is based on the delivery of 4.5 billion cubic meters (bcm) of gas per year:
3.5 bcm via Serbia (the TurkStream pipeline).
1.0 bcm via Austria.
Obviously, Hungary only agreed to the sanction on the basis, that it is excempt.
Then the EU violated EU law, and passed a sanction as a “trade policy”.
Hungary needs to grow some balls, and hammer the European bureocrats as hard as humanely possible.
The EU is the enemy. They proved it with this.
https://m.youtube.com/watch?v=onDtXd0_MQs&list=RDonDtXd0_MQs&start_radio=1&pp=ygUbQWxsIGdvb2QgdGhpbmcgcHVzaCBtZSBkb3duoAcB
A music video with an Indian sitar in the background?
Linkin Park-like – not bad, like, thanks! You see – we do have things in common.
The only leverage we as Hungarians have on the EU is the veto – and the other Members are getting sick of it. Veto means you’re the only one (one in 27) voting against. Regularly. When you’re in a club, this potentially pisses other members off. Maybe not in yours, definitely in mine.
One thing I can guarantee everyone is that should Fidesz win the election and continue with its’ obstruction and corruption there will be no mercy from the EU on anything. Fidesz and Hungary will get a great big spanking. No money for you!
Nincs szükségünk a vérrel és korrupcióval szennyezett euróitokra!