US President Donald Trump has granted Hungary an exemption from sanctions on purchases of Russian oil, marking a significant political victory for Prime Minister Viktor Orbán, Bloomberg reported on November 7.
Orbán and a US official, speaking anonymously, confirmed the decision following the leaders’ meeting at the White House.
Bloomberg highlights that Hungary received a “general, indefinite exemption” for imports of Russian oil and natural gas delivered through its two main pipelines. Orbán has argued that Hungary’s landlocked geography limits its alternatives, saying the country “has no port” and depends heavily on pipeline supply.
The exemption stands in contrast to broader European Union efforts to drastically cut Russian energy imports following Russia’s full-scale invasion of Ukraine. Other buyers—including India—have faced US penalties, with Trump imposing a 50% tariff on Indian goods earlier this year.
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The decision comes at a critical moment for Orbán, who is heading into a 2026 election cycle facing economic stagnation, corruption allegations, and rising living costs. According to Bloomberg, recent polls show a new opposition party gaining double-digit momentum, posing the strongest challenge to Orbán’s rule since 2010.
Trump publicly praised Orbán during the visit, calling him a “great leader” and endorsing his re-election bid. He also echoed Orbán’s argument that Hungary lacks feasible alternatives to Russian energy, despite US officials noting that a Croatian pipeline could supply crude via the Adriatic Sea.
The exemption appears tied to a series of US–Hungary energy agreements. Bloomberg reports that Hungary signed a $100 million contract with Westinghouse Electric Co. to purchase nuclear fuel for its existing atomic plant, which is currently supplied by Russia.
Foreign Minister Péter Szijjártó said Hungary is also negotiating:
a five-year US LNG supply contract, and
the potential purchase of up to 12 small modular reactors in a deal valued as high as $20 billion.
Hungary may ultimately procure fewer reactors, he noted.
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These developments could affect the long-delayed, Russia-backed expansion of Hungary’s Paks nuclear plant. Rosatom is set to begin concrete work on new reactor blocs in February—nearly 12 years after the project began.
Bloomberg notes that Hungary’s increasing reliance on Russian energy has strengthened Orban standing with the Kremlin, making Budapest one of Moscow’s closest partners in the EU. The long-term political impact of the exemption, however, remains uncertain.
The US exemption preserves Hungary’s access to discounted Russian oil and gas while giving Washington leverage through new American energy investments. Whether this approach will translate into electoral support for Orbán—or shift Hungary’s broader geopolitical trajectory—remains to be seen.
Just days before the meeting, Donald Trump stated he would not grant Hungary an exemption from American sanctions on Russian oil—a position that reversed following talks with the Hungarian Prime Minister.
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