Hungary faces over €1 billion in losses should EU push ahead with Russian gas phase-out

The European Commission’s plan to end Russian gas imports by 2027 could cost Hungary an estimated €1.5 billion annually, prompting fierce opposition from Budapest.

Hungarian Foreign Minister Péter Szijjártó criticised the proposal, calling it a "dangerous initiative" that would severely impact Hungary’s economy. In a video address aired on M1 television, he warned that cutting off energy ties with Russia would raise Hungary’s yearly energy import costs by €1.5 billion, or 600 billion forints, and described the move as a direct threat to efforts to keep household utility costs low.

The EU’s new strategy, unveiled on May 6, aims to permanently sever the bloc’s dependence on Russian gas, compelling energy firms to cancel contracts with the Kremlin. If passed, the plan would deliver a significant blow to Moscow’s energy revenues.

This proposal sets the stage for a major confrontation between Brussels and holdout nations like Hungary and Slovakia, who continue to support Russian energy imports.

Unlike sanctions, the plan does not require unanimous approval, allowing the EU to bypass objections from member states. EU Energy Commissioner Dan Jørgensen noted that majority backing is sufficient for the proposal to proceed. “I hope that everybody will move forward, obviously, but if they don’t, that is also OK,” he said during remarks in Strasbourg. “That is also part of the EU — sometimes the majority makes decisions when necessary.”

In September, Hungary reached an agreement with Ukraine to keep receiving Russian crude oil by pipeline, following a dispute that saw Kyiv block gas supplies transiting through its territory to Europe.

By Nazrin Sadigova