Donald Trump has exempted Hungary from sanctions over its continued purchases of Russian oil and gas for one year, a White House official has confirmed to BBC News.
Earlier, the US president said he would consider an opt-out for Hungarian Prime Minister Viktor Orban, a close Trump ally who has maintained good relations with Russia throughout the Ukraine war.
Speaking on Friday during Orban's visit to the White House, Trump said an exemption was under consideration because it's very difficult for him [Orban] to get the oil and gas from other areas.
It comes after the US effectively blacklisted two of Russia's largest oil companies last month, threatening sanctions on those who buy from them.
Following the meeting, Hungarian Foreign Minister Péter Szijjártó wrote on X that the US had given Budapest a full and unlimited exemption from sanctions on oil and gas. An official later clarified that the exemption was time-limited to one year.
This decision by Trump marks a major victory for Orban, who had said the sanctions would ruin his country's economy.
During the public part of the meeting, Trump sounded sympathetic to Hungary's position as a landlocked country, dependent on oil and gas from Russia, but stopped short of giving a specific guarantee. However, it subsequently became clear that the US president had granted an exemption for one year - seemingly in contradiction to his previous determination to penalize anyone doing business with Russia's energy companies.
Hungary has agreed to buy several hundred million dollars of US natural gas as part of the arrangement, but this deal could lead to discontent among European nations that have long opposed Hungary's amicable relationship with Moscow.
Orban has long been a close personal and political ally of the president, echoing much of Trump's populist right-wing rhetoric over immigration and social issues. That loyalty seems to have secured the Hungarian prime minister preferential treatment at a time when he is facing challenging elections in the spring.
Trump added that while Hungary faced unique logistical challenges, including access to a sea that could be used to drill oil, he was very disturbed by other European countries that, he said, continued to buy Russian commodities despite not being landlocked.
Orban, who has long resisted EU efforts to pressure Moscow over Ukraine, defended his energy ties with Russia, stating that pipelines are neither ideological nor political, but a physical reality due to the lack of ports.
He has been leveraging Hungary's heavy dependence on Russian oil and gas to maintain his cordial relations with Moscow, which he hopes will aid his re-election campaign next April, promising voters cheap Russian energy.
Trump and Orban also discussed the war in Ukraine, including the prospect of engaging in talks with Putin. Trump noted, 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 claimed that their two nations were among the few genuinely seeking peace in Ukraine, contrasting this with other governments who he believes mistakenly think Ukraine can win the conflict.
Trump expressed concern about Ukraine's situation, questioning, So you would say that Ukraine cannot win that war? to which Orban replied, You know, a miracle can happen.
Apart from oil and gas sanctions, Hungary's export-driven automotive sector has been affected by Trump's tariffs on European goods, exacerbating an already vulnerable economy.
Despite frequent clashes with EU leaders over migration, democracy, and the rule of law, Trump urged Europe to respect this leader very, very strongly because he's been right on immigration.
With additional reporting by Nick Thorpe
