Hungarian Prime Minister Viktor Orban walked out of the White House on November 7, 2025, with a rare diplomatic victory in hand: a one-year exemption from sweeping U.S. sanctions on Russian oil and gas. The decision, confirmed by both Hungarian and American officials, marks a notable exception to President Donald Trump’s otherwise hardline policy against nations continuing to buy Russian energy—a stance meant to squeeze Moscow’s war machine as the conflict in Ukraine grinds on.
Orban’s visit to Washington was hardly routine. The Hungarian leader, a longtime ally of Trump and a vocal skeptic of European Union efforts to isolate Russia, arrived with a singular mission: to secure his country’s continued access to Russian energy without facing the punishing effects of new U.S. sanctions. As reported by Reuters, Orban emerged from his meeting with Trump announcing, “We have been granted a complete exemption from sanctions” on Russian gas delivered through the TurkStream pipeline and oil from the Druzhba pipeline. A White House official later clarified to BBC News that the exemption is time-limited to one year.
Hungary’s Foreign Minister Péter Szijjártó wasted no time in celebrating the outcome, posting on social media, “A major outcome of today’s meeting between President @realDonaldTrump and @PM_ViktorOrban: the United States has granted Hungary a full and unlimited exemption from sanctions on oil and gas. We are grateful for this decision, which guarantees Hungary’s energy security.” According to CNN, Szijjártó’s relief was well-founded; Hungary’s economy, heavily reliant on Russian energy, faced a potentially catastrophic shock had the sanctions been enforced without exception.
The exemption is not purely a matter of economics—it is also a political boon for Orban as he heads into a challenging election season next spring. Trump’s decision, as BBC News notes, “marks a major victory for Orban, who had said the sanctions would ruin his country’s economy.” Orban has promised voters “cheap Russian energy,” and the U.S. carve-out helps him keep that pledge, at least for now.
For Trump, the move is a balancing act between enforcing tough sanctions and rewarding political allies. Just weeks earlier, the Trump administration had blacklisted two of Russia’s largest oil companies, signaling a willingness to penalize any country buying Russian oil. But as Trump told reporters during Orban’s visit, “We are looking at it because it is very difficult for him to get the oil and gas from other areas. As you know, they don’t have the advantage of having the sea.” He added, “It’s a great country, it’s a big country, but they don’t have sea. They don’t have the ports. And so they have a difficult problem.”
Orban, for his part, has long argued that Hungary’s dependence on Russian energy is not ideological but a “physical reality.” As he put it, “Pipelines are neither ideological nor political, but a physical reality due to the lack of ports.” Hungary, being landlocked, faces logistical hurdles in diversifying its energy sources. Trump appeared sympathetic, noting his frustration with other European countries that, despite not being landlocked, “continued to buy Russian commodities.”
The U.S. exemption comes with strings attached. As part of the arrangement, Hungary agreed to purchase several hundred million dollars’ worth of U.S. natural gas. While this may help diversify Hungary’s energy mix, it is unlikely to offset the country’s overwhelming reliance on Russian imports. According to a joint report from the Center for the Study of Democracy and the Centre for Research on Energy and Clean Air, Hungary’s dependence on Russian crude oil has only deepened since the start of the Ukraine war, rising from 61% before the invasion to a staggering 92% in 2025. Slovakia, Hungary’s neighbor, is “almost 100% dependent” on Russian crude as well.
The European Union, in response to Russia’s invasion of Ukraine in 2022, moved to phase out Russian oil, but Hungary, Slovakia, and the Czech Republic received exemptions to give them time to adjust. Instead of reducing reliance, Hungary and Slovakia have only increased their imports. The Adria pipeline in Croatia, analysts say, could theoretically meet Hungary’s needs if expanded, but Orban disputes this, arguing that the pipeline’s current capacity is insufficient.
Hungary’s continued purchase of Russian energy has frequently put it at odds with Brussels. Orban has used his country’s dependence as leverage, resisting EU sanctions and positioning himself as a defender of Hungary’s economic interests. The exemption from U.S. sanctions now gives him additional ammunition in his ongoing disputes with EU leaders over migration, democracy, and the rule of law.
Beyond energy, Orban’s visit to Washington touched on the war in Ukraine and the possibility of renewed dialogue with Russian President Vladimir Putin. Trump, who has made no secret of his desire to end the conflict, said, “He [Orban] understands Putin and knows him very well... I think that Viktor feels we’re going to get that war ended in the not-too-distant future.” Orban, however, struck a more skeptical note, telling Trump, “You know, a miracle can happen,” when asked if Ukraine could win the war. He argued that only Hungary and the U.S. truly wanted peace, while other governments “prefer to continue the war because many of them think that Ukraine can win on the front line, which is a misunderstanding of the situation.”
The U.S. exemption for Hungary has raised eyebrows among analysts and European officials alike. As CNN points out, it “raises questions about the Trump administration’s seriousness in enforcing its sanctions on Russia’s oil exports.” There is concern that making exceptions for allies could undermine the effectiveness of sanctions and embolden other countries to seek similar carve-outs, potentially eroding the pressure on Moscow to end the war in Ukraine.
Orban’s relationship with Trump has been a consistent theme throughout his tenure. The Hungarian leader has often echoed Trump’s populist rhetoric on immigration and social issues, positioning himself as a “special island of difference in a liberal ocean in Europe.” Orban praised Trump for repairing what he described as damage done to U.S.-Hungary relations under the previous administration, saying, “Now we are in quite a good position to open up a new chapter—let’s say a golden age—between the United States and Hungary.”
Still, the broader picture is far from settled. While Hungary enjoys a reprieve from sanctions, the underlying tensions between Washington, Brussels, and Budapest remain. The EU has agreed to ban all imports of Russian gas by 2028—a move opposed by Hungary and Slovakia—while the U.S. continues to leverage its influence to shape the energy and security landscape of Europe.
The coming year will test whether Orban’s diplomatic gamble pays off. With elections looming, he can point to the U.S. exemption as proof of his ability to deliver for Hungary. But as the war in Ukraine drags on and the international community seeks to tighten the screws on the Kremlin, Hungary’s unique position may become increasingly difficult to defend.
For now, Orban has bought his country time—and perhaps a bit of political breathing room. But the broader questions about Europe’s energy security and the West’s resolve in confronting Russia remain as pressing as ever.