Hungary granted exemption on Russia sanctions after Trump-Orban talks

Hungary has been given a one-year exemption from US sanctions for using Russian oil and gas after Hungarian Prime Minister Viktor Orban pressed his case for a reprieve during a meeting with US President Donald Trump in Washington.

Last month, Trump imposed Ukraine-related sanctions on Russian oil companies Lukoil and Rosneft that carried the threat of further sanctions on entities in countries that buy oil from those firms.

Orban, a long-time Trump ally, met with Trump at the White House on Friday for their first bilateral meeting since the Republican returned to power and explained why his country needed to use Russian oil at a time when Trump has been pressing Europe to stop doing so.

Orban said the issue was vital for Hungary and pledged to lay out "the consequences for the Hungarian people, and for the Hungarian economy, not to get oil and gas from Russia."

Trump, aiming to put pressure on Moscow to end the conflict with Ukraine, said: "We're looking at it, because it's very different for him to get the oil and gas from other areas.

"As you know, they don't have the advantage of having sea. It's a great country, it's a big country, but they don't have sea. They don't have the ports. But many European countries are buying oil and gas from Russia, and they have been for years. And I said, 'What's that all about?'"

A White House official said in addition to the sanctions exemption, Hungary had committed to buying US liquefied natural gas with contracts valued at some $600 million.

Hungary has maintained its reliance on Russian energy since the start of the Ukraine conflict in 2022, prompting criticism from several EU and NATO allies.

Output concerns for Budapest

International Monetary Fund figures show Hungary relied on Russia for 74 percent of its gas and 86 percent of its oil in 2024, warning an EU-wide cutoff of Russian natural gas alone could force output losses in Hungary exceeding four percent of GDP.

Trump said last month that he would meet Russian President Vladimir Putin in the Hungarian capital, but the meeting was put on hold after Russia rejected a ceasefire.

Concerning Moscow's intentions towards fighting, Trump said on Friday: "The basic dispute is they just don't want to stop yet. And I think they will."

When asked by Trump if he thought Ukraine could win the conflict, Orban said: "A miracle can happen."

Economic strategy

Greater economic cooperation between the US and Hungary was also discussed. Orban predicted a "golden age" between the two nations and made a point of criticizing President Joe Biden's administration.

The Hungarian leader, who faces an election in 2026, has cultivated a strong personal rapport with Trump, including on their shared hard-line immigration policies. 

Trump added: "He has not made a mistake on immigration. So he's respected by everybody, he's liked by some. I like and respect him, I'm a double. 

"That's the way Hungary is being led. They're being led properly, and that's why he's going to be very successful in his upcoming election."