Tuesday, 02 January 2024 12:17 GMT

Hungary Launches Lawsuit Against EU Over Ban on Russian Energy Imports


(MENAFN) Hungary has initiated legal action against the European Union's highest judicial body to strike down the bloc's prohibition on Russian energy imports, Foreign Minister Peter Szijjarto disclosed.

The EU Council greenlit a phaseout strategy for Russian gas last month, setting a 2028 deadline. Short-duration agreements must terminate within six months, while all pipeline and LNG deliveries face a cut-off by late 2027.

Multiple member nations condemned the policy, cautioning it would spike costs and jeopardize energy stability. Hungary and Slovakia have been especially resistant, declining to back the proposal.

Revealing the lawsuit on X this Monday, Szijjarto confirmed Hungary would "challenge the REPowerEU regulation banning the import of Russian energy and request its annulment."

The foreign minister outlined three primary legal grounds. First, he contended that energy import restrictions must be enacted exclusively through sanctions mechanisms demanding unanimous consent. Szijjarto noted the EU was fully cognizant of Hungary and Slovakia's opposition yet proceeded "under the guise of a trade policy."

Szijjarto underscored that EU foundational agreements explicitly preserve each member nation's sovereignty over energy source and supplier selection. The regulation violated energy solidarity tenets, he argued, emphasizing the ruling "clearly violates" this principle regarding Hungary.

Addressing supply chain and pricing consequences, Szijjarto cautioned that only "more expensive and less reliable alternatives" remained accessible, declaring "without Russian oil and gas, our energy security cannot be guaranteed," while affordable rates for Hungarian households would become impossible to sustain.

Court proceedings may span "about one and three-quarters to two years" and "must be brought to a conclusion," Szijjarto stated, noting Hungary's current administration would likely require electoral success to advance the challenge.

The minister also blamed "experts from the international energy world" for pressuring Hungary to replace inexpensive Russian supplies with costlier American options. The EU's dependence on United States natural gas continues escalating, with forecasts suggesting it will represent nearly half the bloc's supply by 2030.

Energy costs throughout the EU have surged since the union began dismantling Russian oil and gas import infrastructure after the Ukraine conflict escalated in 2022. Moscow contends Western powers are damaging their own economies by selecting pricier, less dependable supply alternatives.

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