News in brief

US grants Hungary One-Year sanctions exemption for Russian energy

Saturday 08 November 2025 - 09:30

By: Sahili Aya

US grants Hungary One-Year sanctions exemption for Russian energy

The United States has granted Hungary a one-year exemption from new US sanctions targeting Russian oil and gas, following Prime Minister Viktor Orbán’s meeting with President Donald Trump in Washington.

The exemption comes after Trump imposed Ukraine-related sanctions on Lukoil and Rosneft, two major Russian energy firms. The measures threatened to penalize any country buying oil or gas from those companies.

Orbán, who has long been a political ally of Trump, argued that Hungary had no alternative due to its landlocked geography and heavy dependence on Russian energy. “We have no sea, no ports — it’s vital for our economy,” Orbán said.

A White House official confirmed that the exemption is conditional on Hungary signing new contracts to purchase US liquefied natural gas (LNG) worth around $600 million.

According to the IMF, Hungary sourced 74% of its gas and 86% of its oil from Russia in 2024. The country has faced criticism from EU and NATO partners for maintaining close energy ties with Moscow despite the war in Ukraine.

During the meeting, the two leaders also discussed the ongoing conflict between Russia and Ukraine. Trump stated that Moscow “simply does not want to stop fighting,” while Orbán said that “a miracle can happen” regarding Ukraine’s chances of victory.

Orbán, who faces elections in 2026, praised his “golden age” relationship with the United States under Trump’s leadership. Trump, in turn, endorsed Orbán, calling him “a respected and strong leader.”

The move underscores a growing rift between Washington and Brussels, as the EU plans to phase out all Russian gas imports by 2027, a goal Hungary continues to oppose.