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The United States has granted Hungary a one-year exemption from US sanctions on Russian oil and gas, Reuters reports.
Last month, Trump imposed sanctions on Russian oil companies Lukoil and Rosneft, raising the risk of restrictions extending to countries importing their oil. During talks, Hungarian Prime Minister Viktor Orbán stressed that Russian oil and gas are vital for Budapest due to its landlocked position and limited alternative supply options.
“This is a large country, but without ports. They cannot easily obtain oil and gas from other regions,” said US President Donald Trump, noting that “many European countries have been buying energy from Russia for years.” The White House confirmed that in exchange for the exemption, Hungary agreed to purchase around $600 million worth of liquefied natural gas from the US.
Despite criticism from EU and NATO allies, Budapest remains dependent on Russian energy. According to the IMF, in 2024 Hungary sourced 74% of its gas and 86% of its oil from Russia. Halting Russian gas deliveries could cost the country over 4% of GDP.
Trump and Orbán also discussed Russia’s war against Ukraine. Trump said Moscow is not yet ready to stop fighting but expressed hope that “this could change,” to which Orbán responded, “a miracle could happen.”
The decision is controversial, as Trump previously criticized European countries for continuing to buy Russian oil and gas “while at war with it.”
Orbán visited Washington on Friday, November 7, following the US sanctions on Lukoil and Rosneft.
