Overview
- President Donald Trump approved the exemption after White House talks with Prime Minister Viktor Orbán, allowing Hungary to keep importing Russian oil and gas.
- A White House official told Reuters the waiver lasts one year, while Budapest insists it secured an open-ended exemption covering the Druzhba oil line and TurkStream gas route.
- Hungary agreed to diversify by purchasing U.S. liquefied natural gas under contracts worth about $600 million and to shift to American nuclear fuel.
- Energy analysts warn the carve-out could funnel more than €1 billion to the Kremlin and weaken the bite of sanctions targeting Russia’s oil and gas revenues.
- IMF figures show Hungary sourced about 74% of its gas and 86% of its oil from Russia in 2024, highlighting its near-term dependence on pipeline supplies.