Ask Onix
US Grants Hungary One-Year Sanctions Exemption for Russian Oil and Gas
The United States will exempt Hungary from sanctions on Russian oil and gas purchases for one year, a White House official confirmed to the BBC on Friday. The decision follows a meeting between President Donald Trump and Hungarian Prime Minister Viktor Orbán at the White House, where the two leaders discussed energy security and the war in Ukraine.
Orbán Secures Concession Amid Election Pressure
Orbán, a longstanding ally of Trump, had warned that sanctions on Russian energy would devastate Hungary's economy. The landlocked nation relies heavily on Russian oil and gas due to limited alternative supply routes. During their meeting, Trump acknowledged Hungary's logistical challenges, stating, "It's very difficult for him to get the oil and gas from other areas."
Hungarian Foreign Minister Péter Szijjártó announced on X that Budapest had received "a full and unlimited exemption," though a US official later clarified the waiver is time-bound to one year. As part of the agreement, Hungary committed to purchasing "several hundred millions of dollars" of US natural gas-a move likely to draw criticism from European allies who oppose Orbán's pro-Russia stance.
Trump Criticizes Other European Nations
While justifying Hungary's exemption, Trump condemned other European countries for continuing to buy Russian energy despite not facing the same geographic constraints. "I'm very disturbed by other countries that aren't landlocked but still buy from Russia," he said. Orbán, meanwhile, defended his energy ties with Moscow, calling pipelines a "physical reality" and dismissing ideological objections.
The exemption underscores Orbán's strategic use of Hungary's energy dependence to maintain relations with both the US and Russia-a balancing act that has intensified ahead of Hungary's April elections, where he has promised voters "cheap Russian energy."
Ukraine War and Potential Putin Talks
Trump and Orbán also discussed the Ukraine conflict, with the US president suggesting Orbán's relationship with Vladimir Putin could aid peace efforts. "He understands Putin and knows him very well," Trump said, adding that he believed the war could end "in the not-too-distant future."
Orbán claimed only the US and Hungary genuinely seek peace, asserting that other governments mistakenly believe Ukraine can win militarily. When pressed by Trump on Ukraine's prospects, Orbán replied, "A miracle can happen."
Broader Tensions and Economic Strain
The meeting came as Hungary's car industry faces strain from Trump's tariffs on European goods, compounding economic challenges. Despite Orbán's clashes with EU leaders over migration, democracy, and rule-of-law concerns, Trump urged Europe to "respect this leader very, very strongly because he's been right on immigration."
The exemption marks a reversal of Trump's stance just two weeks prior, when he vowed to penalize entities trading with Russian energy firms. Analysts note the concession reflects Orbán's loyalty to Trump's populist agenda, which aligns on issues like immigration and opposition to progressive social policies.
