U.S. Grants Hungary Sanctions Exemption Following Trump–Orbán Meeting

World 09:43 AM - 2025-11-08

U.S. President Donald Trump hosts a bilateral lunch with Hungarian Prime Minister Viktor Orban, Vice President JD Vance, and Secretary of Defense Pete Hegseth at the White House in Washington, D.C., U.S., 8 November 2025.

The United States has granted Hungary a one-year exemption from sanctions on the use of Russian oil and gas, a White House official confirmed on Friday, following a cordial meeting between Hungarian Prime Minister Viktor Orbán and U.S. President Donald Trump in Washington.

The exemption comes after President Trump’s administration imposed Ukraine-related sanctions last month on Russian oil giants Lukoil and Rosneft, which also threatened penalties on countries continuing to import oil from the sanctioned firms.

During Friday’s meeting — the first bilateral encounter since President Trump’s return to office — PM Orbán, a long-time ally of the Republican president, pressed his case for continued access to Russian energy, citing Hungary’s heavy dependence on Russian supplies.

PM Orbán stressed that the issue was vital for Hungary’s economy, pledging to explain “the consequences for the Hungarian people and the Hungarian economy of not receiving oil and gas from Russia.”

President Trump, who has sought to increase pressure on Moscow to end its war against Ukraine, expressed sympathy for PM Orbán’s position.

“We’re looking at it because it’s very different for him to get oil and gas from other areas,” President Trump said. “They don’t have the advantage of having sea access. It’s a great country, but they don’t have ports.”

A White House official later noted that the exemption was granted alongside Hungary’s commitment to purchase US liquefied natural gas (LNG) under contracts worth approximately $600 million.

Hungary has continued to rely heavily on Russian energy since the outbreak of the war in Ukraine in 2022, drawing criticism from EU and NATO allies.

According to International Monetary Fund (IMF) figures, 74% of Hungary’s gas and 86% of its oil came from Russia in 2024. The IMF has warned that a full EU ban on Russian gas could cause output losses exceeding 4% of Hungary’s GDP.

The two leaders also discussed Russia’s ongoing war in Ukraine. Trump reiterated his belief that Russia “simply does not want to stop fighting,” but added, “I think they will.” When asked if Ukraine could win the war, Orbán replied: “A miracle can happen.”

Economic Cooperation and Political Alignment

Broader economic cooperation between the United States and Hungary was also high on the agenda. Orbán predicted a “golden age” in bilateral relations and sharply criticised President Joe Biden’s administration, a gesture widely seen as appealing to Trump’s political base.

Orbán, who faces a national election in 2026, has long cultivated a close personal relationship with Trump, built on their shared hard-line stance on immigration. Trump publicly endorsed Orbán, saying:

“He has not made a mistake on immigration. I like and respect him — and that’s why he’ll be very successful in his upcoming election.”

Last year, the European Union’s top court ruled that Hungary must pay a €200 million fine for failing to comply with EU migration policies and will continue to incur a €1 million daily fine until it meets the required changes. Orbán referenced the issue during the meeting, insisting that Hungary would handle its intra-EU disputes independently.

Relations between Washington and Budapest have improved markedly under President Trump’s leadership. In a symbolic move last month, the US restored Hungary’s full status in its visa waiver programme.

However, Hungary’s continued opposition to the EU’s plan to phase out Russian gas imports by 2027 has widened its rift with Brussels. Ratings agency S&P recently highlighted that Hungary remains one of Europe’s most energy-intensive economies, with refineries optimised for processing Russian Urals crude. While alternative supplies from Azerbaijan and Qatar may offset some losses, S&P warned that Hungary’s fiscal and external accounts remain vulnerable to future energy shocks.



PUKMEDIA