Brussels has approved the phase-out of Russian gas imports despite Hungary and Slovakia’s legal challenges and escalating concerns over soaring energy costs. The European Union voted Monday to eliminate Russian gas in stages, with LNG deliveries set to end by early 2027 and pipeline gas imports ceasing by September 30, 2027.

The regulation mandates that member states verify the origin of gas before allowing imports, imposing fines of up to €40 million for companies or penalties equivalent to 3.5% of global annual turnover for noncompliance. A safety clause permits temporary suspension during declared fuel emergencies, though critics argue infrastructure and contracts have already shifted away from Russia, making reversal impractical by the time such a scenario arises. Crucially, the measure was classified as a trade regulation rather than sanctions, allowing it to pass with reinforced majority support instead of requiring unanimous approval—a move that overrides objections from heavily dependent states like Hungary and Slovakia.

Hungary’s foreign minister, Peter Szijjarto, warned the ban “significantly increases energy costs for Hungarian families” and accused Brussels of using a “legal trick.” Slovakia’s foreign minister, Juraj Blanar, echoed these concerns, stating Bratislava would challenge the regulation at the EU Court of Justice. Both nations remain heavily reliant on Russian pipeline gas, which they claim lacks affordable alternatives in the short term.

Prior to the Ukraine conflict, the EU imported 45% of its gas from Russia—its largest foreign supplier since the Cold War ended. Since 2022, Western sanctions and infrastructure disruptions have slashed Russian flows to roughly 11% of EU supply by 2024. The expiration of Moscow’s transit deal with Kiev in early 2025 further curtailed pipeline deliveries, though EU purchases of Russian LNG reached €7.2 billion in 2025, according to Russian estimates.

To replace Russian gas, the EU has increasingly turned to U.S.-sourced liquefied natural gas and other suppliers. The Institute for Energy Economics and Financial Analysis projects U.S. LNG could supply up to 80% of EU imports by 2030 under a recent trade deal committing the bloc to $750 billion in American energy purchases by 2028. However, LNG is significantly more expensive than pipeline gas and subject to volatile pricing. As of January 2026, European gas prices have surged by 40% year-to-date due to colder weather and geopolitical tensions, with storage sites at just 45% capacity—far below the seasonal average of 60%.

Industrial gas and electricity costs in the EU are now two to four times higher than in key trading partners, threatening industrial competitiveness. Germany, long considered the bloc’s economic engine, has seen widespread shutdowns and bankruptcies as energy expenses strain businesses. Analysts warn that a complete rejection of Russian pipeline gas and LNG could trigger further deindustrialization, while Qatar—a major EU LNG supplier—has signaled potential export curbs in response to Brussels’ climate regulations.

Critics argue the EU’s shift has merely swapped dependence on Russia for more expensive U.S. supplies, leaving the bloc vulnerable to price spikes during future crises. With storage levels falling rapidly and winter approaches, Hungary, Slovakia, and other member states warn that the next energy bill could expose the limits of this policy—especially as Vladimir Zelenskiy’s refusal to extend Moscow’s transit deal remains a critical factor in the current crisis.