BRUSSELS / BUDAPEST - The European Commission on Tuesday proposed legislation to phase out all Russian natural gas and oil imports to the European Union (EU) by the end of 2027.

The draft regulation, part of the Commission's REPowerEU Roadmap, bans the conclusion of new contracts for Russian gas as of Jan 1, 2026, and mandates the termination of existing short-term contracts by June 17, 2026.

Long-term pipeline gas and liquefied natural gas (LNG) contracts with Russian suppliers would be permitted to run only until the end of 2027.

ALSO READ: PM: Slovakia opposes EU's plan to end Russian energy imports

EU member states are required to present diversification plans with precise measures and milestones for the gradual elimination of Russian gas and oil imports, said the Commission in the press release.

EU member states will also be required to report on Russian gas volumes and contractual obligations, including LNG shipments, to enhance transparency and enforceability.

READ MORE: EU agrees on fresh sanctions against Moscow

The plan also targets Russian oil, setting a 2027 deadline for ending imports. While Russian oil has already dropped from 27 percent of EU imports in early 2022 to just 3 percent in 2024, the Commission argued that a complete cessation is necessary to eliminate residual risks.

The regulation still requires adoption by the European Parliament and the Council of the EU, with a qualified majority needed for approval.

Hungary's energy security

Hungary's Minister of Foreign Affairs and Trade Peter Szijjarto on Tuesday strongly criticized a European Union's (EU) legislative proposal to phase out Russian natural gas and oil imports.

READ MORE: Russia says Kyiv continues to attack energy facilities

Speaking in Budapest, Szijjarto said the proposal poses a threat to Hungary's energy security and its utility cost reduction measures. He vowed that the government would resist the measure by all available means.

The Hungarian minister warned that, if adopted, the proposal would force Hungarian households to pay twice as much for electricity and more than three times as much for gas.

According to Szijjarto, the proposed regulation would ban short-term gas contracts with Russia starting in early 2026 and prohibit long-term agreements from 2028. Crude oil imports from Russia would also be phased out by 2028.