Russian oil has taken center stage once again as former U.S. President Donald Trump has reportedly granted Hungary a one-year exemption from American sanctions targeting Moscow’s energy exports. The decision, confirmed by the White House on Friday, has already sparked intense international debate and marks a significant shift in Washington’s approach toward its European allies and its broader sanctions policy on Russia.
According to senior officials, the exemption allows Hungary to continue importing Russian crude through existing energy channels despite ongoing restrictions placed on most Western nations. When Prime Minister Viktor Orban – whose country buys more Russian oil and gas than any other EU nation – visited the White House on Friday,
Trump praised him as a “great leader” of a “great country.” He acknowledged that it has been “difficult” for Hungary to reduce its reliance on Russian fossil fuels due to its landlocked geography. The White House described the move as a “strategic exception” aimed at strengthening U.S. Hungary relations and ensuring European energy stability.
Trump, who has long emphasized the importance of pragmatic diplomacy, said in a brief statement that the decision was made to “protect American interests while supporting a key NATO ally.”
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Analysts say the move could ease pressure on Hungary, which has repeatedly clashed with Brussels over its energy dependence on Russia. Prime Minister Viktor Orbán has consistently resisted EU efforts to cut ties with Moscow, arguing that Hungary’s economy and energy security rely heavily on Russian oil and gas.Reactions across Europe were mixed. While Budapest welcomed the decision as a breakthrough, many EU officials expressed concern that it could undermine collective efforts to isolate the Kremlin’s energy exports.
But Hungary and neighboring Slovakia are the only EU countries still receiving oil from Russia, via the Druzhba pipeline. Following Moscow’s full-scale invasion of Ukraine in 2022, EU nations began phasing out Russian oil, but Hungary was given an exception, Slovakia, and the Czech Republic—three nations heavily reliant on Russian imports—to give them time to reduce their dependence. A senior EU diplomat, speaking on condition of anonymity, said, “This exemption risks sending a message that sanctions are negotiable.”
Energy market analysts warn that the exemption could lead to ripple effects across the global oil market. With Hungary continuing to purchase Russian crude, Moscow could gain an important foothold in Europe despite Western sanctions, keeping Russian oil as a key factor in shaping regional energy dynamics.
A recent report suggested that phasing out Russian oil would be entirely possible for Hungary and Slovakia, noting that the Adria pipeline in Croatia could handle both countries’ energy needs. Orbán, however, dismissed that claim, arguing that Croatia would first need to expand the pipeline to meet Hungary’s full demand.
Meanwhile, despite the EU’s broader effort to curb dependence on Moscow, many member states still import Russian gas via the Turk Stream pipeline through Turkey. Russia’s share of EU gas imports has plunged from 40% before the invasion of Ukraine to just 11% in 2024. In a bold move last month, EU nations agreed to end all imports of Russian oil by 2028 a decision strongly opposed by Hungary and Slovakia.
The White House insists the exemption will be reviewed in twelve months, emphasizing that the decision does not signal a broader rollback of sanctions against Russia. “This is a temporary measure based on specific circumstances,” said National Security Advisor Mark Reynolds. “Our overall policy toward Moscow remains unchanged.”
As the geopolitical dust settles, Trump’s move may redefine not only U.S. Hungary relations but also Washington’s role in shaping Europe’s post-sanctions energy landscape. Orbán praised Trump for repairing what he described as damage caused to U.S.–Hungary relations by the Biden administration, which had imposed sanctions on Hungary largely as a response to concerns over democratic backsliding.
The Trump administration has since lifted several of those restrictions, signaling a reset in the relationship. Whether this “exclusive exemption” proves to be a diplomatic breakthrough or a controversial gamble will depend on how both allies and critics react in the coming months.