US grants Hungary one-year exemption from sanctions over Russian energy imports

Last month, Trump imposed sanctions on the Russian oil companies Lukoil and Rosneft, creating a risk that the restrictions could extend to countries purchasing oil from them. During negotiations, Hungarian Prime Minister Viktor Orbán emphasized that for Budapest, the use of Russian oil and gas is vital given the country’s lack of access to the sea and limited alternative supply routes.

"It's a great country, it's a big country, but they don't have a sea. They don't have the ports," US President Donald Trump said, adding that "many European countries are buying oil and gas from Russia, and they have been for years."

According to the White House, in exchange for the sanctions waiver, Hungary agreed to purchase liquefied natural gas (LNG) from the United States worth about $600 million.

Despite criticism from EU and NATO allies, Budapest remains dependent on Russian energy. According to IMF data, in 2024, Hungary received 74% of its gas and 86% of its oil from Russia. If Russian gas supplies were cut off, the country could lose over 4% of its GDP.

During the meeting, Trump and Orbán also discussed Russia’s war against Ukraine. Trump said that Moscow is “not yet ready to stop fighting,” but expressed hope that "this may change."In response, Orbán said that “a miracle could happen.”

It is worth noting that Trump’s decision is quite controversial, as he previously harshly criticized European countries for continuing to buy oil and gas from Russia "while they're fighting Russia."

Orbán’s visit to Washington

As a reminder, Hungarian Prime Minister Viktor Orbán visited Washington on Friday, November 7, following the US decision to impose sanctions on Russian oil companies Lukoil and Rosneft.

Earlier, the Hungarian prime minister had called Trump’s decision to introduce new sanctions against Russia a mistake.

Orbán has also refused to stop purchasing Russian oil, saying that the supplies are “secured by long-term contracts.”