Hungarian Prime Minister Viktor Orbán said Hungary has secured a full exemption from U.S. sanctions for Russian oil and gas delivered via the Druzhba and TurkStream pipelines, following a cordial meeting at the White House with U.S. President Donald Trump on Friday, 7 November.
The claim, attributed to remarks at a subsequent briefing, would allow Budapest to continue importing Russian energy despite recently tightened U.S. measures on Russia’s oil sector. The White House signalled it was examining Hungary’s position but has not issued a formal exemption notice.
During the Cabinet Room session, Trump praised Orbán and acknowledged Hungary’s logistical constraints as a landlocked state reliant on pipeline supply. Orbán outlined the potential impact on households and industry were Russian deliveries curtailed. Reuters reported that Trump said Washington was “looking at” the matter, noting Hungary’s lack of seaports and dependence on overland routes. It was the pair’s first bilateral meeting since Trump’s return to office.
Orbán’s post-meeting message went further. Citing his briefing, regional outlets reported him as saying Hungary had received a “full sanctions exemption” covering Druzhba crude and TurkStream gas. Kyiv-based media repeated the claim, emphasising that it would permit continued imports. Politico, however, characterised the U.S. stance as opening the door to a possible waiver rather than confirming one, underscoring an apparent gap between Budapest’s account and publicly stated U.S. policy.
Any carve-out would intersect with measures announced on 22 October, when the United States sanctioned Russia’s two largest oil companies, Rosneft and Lukoil, as part of a renewed effort to constrain Moscow’s revenues from energy sales. Those steps raised compliance questions for countries still purchasing Russian molecules, directly or indirectly, and prompted Budapest to seek relief citing energy security.
Hungary remains among the European Union’s most Russia-dependent energy systems. IMF data for 2024 indicate Hungary sourced 74% of its gas and 86% of its oil from Russia. The Fund has previously assessed that an EU-wide cutoff of Russian natural gas alone could impose output losses in Hungary exceeding 4% of GDP. Budapest argues that refinery configuration and pipeline geography complicate rapid diversification.
Trump used the meeting to question continued European purchases of Russian energy while indicating understanding of Hungary’s position. Asked about Ukraine’s prospects, Trump said Russia did not yet want to stop fighting but added that he believed it would; Orbán responded that a “miracle can happen”. The exchange reflected Budapest’s prioritisation of immediate energy security alongside its scepticism about a swift Ukrainian victory, positions that have drawn criticism within the EU and NATO since 2022.
Beyond energy, Orbán said the sides discussed “new forms” of U.S.–Hungary financial cooperation aimed at supporting Hungary’s stability, and referenced potential collaboration in the space and defence sectors. Reporting around the visit also noted that Budapest has framed the talks as the start of a “golden age” in economic relations after a period of tensions.
The bilateral agenda unfolded against continuing disputes between Hungary and EU institutions. In June 2024 the Court of Justice of the European Union imposed a €200 million lump-sum fine on Hungary for failing to implement earlier asylum rulings, and ordered a further €1 million per day until compliance. Orbán referenced the fines during his Washington visit but said Budapest would handle intra-EU matters domestically.
For Brussels and Washington alike, the policy question now is twofold: whether the United States will formalise an exemption tailored to Hungary’s pipeline imports, and how such a step would align with broader transatlantic efforts to reduce Kremlin energy revenues. Politico’s account of an “open door” suggests discussions are ongoing; Orbán’s depiction of a settled exemption indicates he believes political cover has been achieved. Until an official U.S. designation or guidance is published, companies exposed to U.S. jurisdiction may continue to weigh counterparty risk in dealings that touch Russian supply chains.
Within the EU, the European Commission plans to end imports of Russian pipeline gas and LNG by end-2027. Hungary has resisted, citing limited and costly alternatives. If Washington formalises a waiver for Budapest, other member states with residual exposure to Russian supplies are likely to scrutinise its scope and conditions closely.
Friday’s meeting delivered positive optics and, according to Budapest’s readout, substantive movement on sanctions exposure. The practical impact will turn on the nature of any U.S. legal instrument and how it interfaces with recent sanctions on Rosneft and Lukoil. In the interim, Hungary’s reliance on Russian energy, and the constraints of its refinery and pipeline system, remain central to its case for special treatment—and to the wider European debate over how to balance energy security with sanctions enforcement.
