The United States has granted Hungary a one-year exemption from US sanctions for using Russian oil and gas.

This decision follows a meeting between Hungarian Prime Minister Viktor Orban and President Donald Trump at the White House, during which Orban explained his country's need to use Russian oil.

Last month, Trump imposed Ukraine-related sanctions on Russian oil companies Lukoil and Rosneft, with the threat of further sanctions on entities in countries that buy oil from those firms.

Orban, a long-time ally of Trump, met with him to discuss Hungary's reliance on Russian energy sources at a time when Trump has been pressuring Europe to stop doing so.

During their meeting, Orban pledged to lay out the consequences for the Hungarian people and economy if they were unable to obtain oil and gas from Russia.

Trump appeared sympathetic to this position, stating that it is different for Hungary to get its energy from other areas due to its lack of access to seas.

He also questioned why many European countries have been buying oil and gas from Russia for years.

In addition to the sanctions exemption, Hungary has committed to buying US liquefied natural gas with contracts valued at some $600 million.

This move aims to strengthen economic ties between the US and Hungary.

Hungary's continued reliance on Russian energy has faced criticism from several European Union and NATO allies.

According to International Monetary Fund figures, Hungary relied heavily on Russia for its gas and oil in 2024.

The EU-wide cutoff of Russian natural gas could result in significant output losses in Hungary, exceeding 4 percent of GDP.

The meeting between Trump and Orban also touched upon the ongoing conflict between Russia and Ukraine.

Trump stated that he would meet with Russian President Vladimir Putin in Budapest but put the plan on hold after Russia rejected a ceasefire.

He expressed his belief that Russia simply does not want to stop fighting, stating that a miracle could happen in Ukraine's favor.

Greater economic cooperation between the US and Hungary was also discussed during their meeting.

Orban predicted a 'golden age' for the two nations and criticized President Joe Biden's administration.

The Hungarian leader, who faces an election in 2026, has cultivated a strong relationship with Trump, including on immigration policies.

Trump expressed his support for Orban's upcoming election.

The EU's top court ruled last year that Hungary must pay a 200-million-euro fine for not implementing changes to its policy of handling migrants and asylum seekers at its border.

Hungary is now dealing with its intra-EU disputes independently, as per Orban's statement during his meeting with Trump.

In another development, the US fully restored Hungary's status in its visa waiver program last month.

This move signifies improved ties between Hungary and the US under the Trump administration.

Hungary has also pushed back against plans by the European Commission to phase out EU imports of all Russian gas and LNG by the end of 2027, deepening a rift with Brussels over relations with Moscow.

S&P Ratings agency noted that Hungary's energy-intensive economy relies heavily on Russian Urals crude oil and that while gas supplies from Azerbaijan and Qatar could help replace Russian supply, Hungary's fiscal and external accounts remain vulnerable to an energy shock.