The European Commission is set to resume discussions with Ukraine about the natural gas supply to Europe, bringing Hungary and Slovakia into the mix. The announcement came on January 27, just ahead of the EU foreign ministers’ meeting, where they will review the renewal of sanctions on Russia, which are set to expire on January 31.
This move follows the disruption of Russian gas supplies through Ukraine on January 1, after a transit contract ended. Slovakia and Hungary have been urging the EU to intervene and restore the gas flow via a key pipeline. Meanwhile, Hungary has been blocking the renewal of EU sanctions on Russia, as a unanimous vote is required for approval. As of Friday, Hungary hadn’t decided on whether to back the sanctions extension.
The Hungarian government is leveraging this position to demand the release of over €10 billion in post-COVID recovery funds that Brussels has frozen. Prime Minister Viktor Orbán has argued that the sanctions hurt Hungary’s economy and stressed the need for gas supplies from Ukraine to ensure EU energy security.
Despite the standoff, EU High Representative for Foreign Affairs, Kaja Kallas, expressed optimism that the sanctions would be renewed. Hungary reportedly signaled a willingness to stop blocking the measure if energy security guarantees were provided. These sanctions include trade restrictions and asset freezes on Russia’s central bank. Under EU rules, sanctions must be renewed every six months with unanimous approval from member states.
Earlier, Orbán had sought consultations with the Trump administration before deciding on the sanctions renewal. However, Hungary’s main focus has been on gas supply concerns following the termination of the agreement that allowed Russian gas to flow into the country. On January 27, Hungary indicated it would approve the sanctions renewal, as long as the European Commission assures action will be taken to protect energy security.