In a significant diplomatic development, former US President Donald Trump has granted Hungary a one-year exemption from American sanctions imposed on Russian energy imports. This decision followed a high-level meeting between President Trump and Hungarian Prime Minister Viktor Orban at the White House on Saturday, 8th November 2025.
White House Meeting Yields Critical Exemption
The White House confirmed that Prime Minister Orban successfully convinced President Trump to allow Hungary to continue importing Russian oil and gas without facing penalties from the sanctions regime targeting Russian fossil fuels. This exemption represents a notable concession amidst broader Western efforts to curb Europe's reliance on Russian energy following the invasion of Ukraine.
Speaking at a press conference after their discussions, Mr Orban stated that Hungary had "been granted a complete exemption from sanctions" affecting Russian gas delivered via the TurkStream pipeline and oil supplied through the Druzhba pipeline. The nationalist leader, a long-standing Trump ally, had previously described access to Russian energy as "vital" for his landlocked nation.
Strategic and Economic Necessity for Hungary
President Trump appeared sympathetic to Hungary's geographical constraints, noting the country's lack of direct sea access for alternative energy imports. "We're looking at it, because it's very different for him to get the oil and gas from other areas," President Trump remarked. "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."
According to International Monetary Fund figures, Hungary relied on Russia for 74% of its gas and 86% of its oil in the previous year. The IMF had previously warned that a complete EU-wide cutoff of Russian natural gas could result in economic output losses in Hungary exceeding 4% of its GDP.
Broader Energy and Diplomatic Agreements
As part of their broader discussions, the two nations announced several significant energy agreements. The US State Department confirmed that Hungary agreed to purchase American liquefied natural gas (LNG), with expected contracts valued at approximately $600 million (£455 million).
Additionally, the countries agreed to cooperate on nuclear energy development, including small modular reactors. In a strategic shift away from Russian nuclear fuel, Hungary will purchase nuclear fuel from US-based Westinghouse Electric Company for its Paks nuclear plant, which had previously relied exclusively on Russian supplies.
The exemption comes despite the Trump administration's broader policy push for Europe to stop using Russian energy, including sanctions imposed on 22nd October against Russia's two largest oil companies—a move Russian President Vladimir Putin described as an "unfriendly act".
The leaders also discussed the ongoing conflict in Ukraine, with President Trump expressing his view that the warring parties "just don't want to stop yet" but suggesting that resolution might be forthcoming. When asked if Ukraine could achieve victory, Prime Minister Orban responded that a "miracle can happen".
