The United States has granted Hungary a one-year exemption from sanctions on Russian oil and gas imports, following a cordial meeting between Hungarian Prime Minister Viktor Orban and U.S. President Donald Trump at the White House on Friday.
A White House official confirmed the decision, noting that Orban secured the reprieve after arguing that Hungary’s landlocked geography left it dependent on Russian energy.
The exemption comes despite Trump’s recent imposition of Ukraine-related sanctions on Russian energy giants Lukoil and Rosneft, which threatened penalties for nations continuing to buy oil from those firms.
During their first bilateral talks since Trump’s return to office, Orban emphasized that cutting off Russian supplies would devastate Hungary’s economy.
“This issue is vital for Hungary,” Orban said. “I wanted to lay out the consequences for the Hungarian people and our economy if we could not get oil and gas from Russia.”
Trump appeared sympathetic to the Hungarian leader’s position, acknowledging the country’s lack of access to seaports.
“They don’t have the advantage of having sea. It’s a great country, but they don’t have ports,” Trump said. “Many European countries are still buying oil and gas from Russia, and I said, ‘What’s that all about?’”
As part of the arrangement, Hungary has agreed to purchase $600 million worth of U.S. liquefied natural gas (LNG), the White House official added.
Hungary’s continued reliance on Russian energy has long drawn criticism from European Union and NATO allies. According to the International Monetary Fund, Russia supplied 74% of Hungary’s gas and 86% of its oil in 2024.
The IMF warned that an EU-wide cutoff of Russian gas could shrink Hungary’s GDP by more than 4%.
The leaders also discussed the ongoing war in Ukraine. Trump, who previously announced plans to meet Russian President Vladimir Putin in Budapest before the encounter was postponed, said Moscow “just doesn’t want to stop yet.” Asked whether Ukraine could win the war, Orban replied, “A miracle can happen.”
Beyond energy and security, the meeting underscored warming economic and political ties between Washington and Budapest. Orban predicted a “golden age” in U.S.-Hungarian relations and drew praise from Trump for his hard-line immigration stance and upcoming 2026 election prospects.
“He’s respected by everybody… I like and respect him,” Trump said. “Hungary is being led properly, and that’s why he’ll be very successful.”
The European Union’s top court last year fined Hungary €200 million ($216 million) for failing to reform its migrant policies and imposed an additional €1 million daily penalty until compliance. Orban, referencing the fine, said Budapest would manage its EU disputes independently.
In a sign of improving ties, the United States recently reinstated Hungary’s full participation in its visa waiver program. However, Hungary continues to clash with Brussels over the EU’s plan to phase out all Russian gas imports by 2027.
Ratings agency S&P has cautioned that Hungary’s heavy reliance on Russian Urals crude and limited alternatives make its economy vulnerable to future energy shocks, even as it explores new supplies from Azerbaijan and Qatar.
The White House framed Friday’s exemption as both pragmatic and strategic, preserving unity with a key NATO ally while maintaining pressure on Moscow amid the ongoing war in Ukraine.
Source: Reuters
Written By Rodney Mbua
