Why Trump Granted Hungary a Waiver Despite Buying Russian Oil and Gas

US President Donald Trump had announced sanctions against countries purchasing Russian oil and gas. However, he showed leniency towards Hungary, granting the country a waiver from these sanctions for the coming year. A White House official confirmed the matter to the BBC.

Earlier, Trump had indicated that he was considering granting Hungary an exemption from the sanctions.

Hungary’s Prime Minister, Viktor Orbán, is a close ally of Trump. At the same time, he has maintained cordial relations with Russia since the beginning of the war in Ukraine.

On Friday, while welcoming Orbán to the White House, Trump stated that the waiver was under consideration because sourcing oil and gas from elsewhere would be extremely difficult for Orbán.

Last month, the United States blacklisted Russia’s two largest oil companies and warned that countries purchasing from them would face sanctions.

Following the meeting between Orbán and Trump, Hungary’s Foreign Minister, Péter Szijjártó, wrote on X that the United States had given Budapest “a full and unlimited exemption from oil and gas sanctions.” However, a US official later clarified to the BBC that the waiver is time-bound and applies for one year.

Trump’s decision is being seen as a major victory for Orbán, who had previously warned that the sanctions would devastate Hungary’s economy.

During the White House meeting, Trump demonstrated a sympathetic attitude towards Hungary’s situation, noting that the country is landlocked and dependent on Russian oil and gas. At that time, he did not provide any specific guarantees.

It later became clear that Trump had approved a one-year waiver, a significant shift from his previous position. Just two weeks prior, he had warned that purchasing oil and gas from Russia would trigger sanctions.

As part of the deal, Hungary has agreed to purchase several hundred million dollars’ worth of natural gas from the United States. However, many European nations are unlikely to view this agreement favourably, as they have long opposed Hungary’s pro-Moscow stance.

Viktor Orbán is both a long-standing personal and political ally of Trump. He often echoes Trump’s right-wing positions on immigration and social issues. This loyalty is likely one of the reasons he received special treatment, particularly at a time when Trump faces a challenging election next spring.

Trump also noted that Hungary faces geographical challenges, with no access to a seaport for extracting oil. He expressed concern about other European countries that, despite being landlocked, continue to purchase Russian products.

On Friday, Orbán stated that his country’s relationship with Russia is “not ideological or political, but rather a matter of physical reality,” citing Hungary’s lack of a port.

He has used the country’s dependence on Russian oil and gas as a means to maintain ties with Russia. Simultaneously, it forms part of his electoral strategy, as he has promised voters access to “cheap Russian energy” ahead of the April re-election.

Trump and Orbán also discussed the war in Ukraine on Friday. This was their first official meeting since Trump returned to office. The conversation included the possibility of talks with Russian President Vladimir Putin.

Trump remarked, “Orbán understands Putin well; he knows him thoroughly. I think Viktor believes we can end this war very soon.”

In response, Orbán said that only Hungary and the United States desire peace in the Ukraine conflict. Other governments wish the war to continue, believing they can achieve victory on the battlefield — a misjudgment of the situation.

Trump then asked, “So you would say Ukraine cannot win this war?” Orbán replied, “You know, miracles can happen.”

Beyond the issue of oil and gas sanctions, Hungary’s export-dependent car industry has been affected by Trump’s tariffs on European goods, placing additional pressure on the country’s fragile economy.

Trump praised Orbán for frequently clashing with European leaders over immigration, democracy, and the rule of law, saying, “Europe should deeply respect this leader, as he was entirely correct on immigration issues.”