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Minister: Hungary's exemption from US sanctions against Russia energy is permanent

Hungary announced on Saturday that it has been granted an indefinite exemption from U.S. sanction for its use of Russian oil and natural gas. This is contrary to a White House official, who claimed it was only granted a year-long exemption.

Last month, U.S. president Donald Trump imposed sanctions related to Ukraine on Russian oil firms Lukoil & Rosneft. These sanctions carried the threat of additional sanctions against entities who buy oil from these firms.

Viktor Orban met with Trump, a longtime ally of Trump, at the White House last Friday in order to push for a reprieve. Hungary heavily relies on Russian energy, and Orban faces a tight election in 2019.

The prime minister was very clear. Peter Szijjarto, Hungarian foreign minister, said on Facebook that he had agreed with President Obama to obtain an exemption from sanctions for indefinite time.

There are no sanctions indefinitely on the oil and gas exports to Hungary.

The White House official noted that in addition to the exemption from sanctions, Hungary had also committed to buy U.S. Liquefied Natural Gas with contracts worth around $600 million.

Hungary's continued reliance on Russian Energy since the beginning of the conflict in Ukraine 2022 has prompted criticism from several European Union allies and NATO members.

Orban said that Hungary has received an exemption indefinitely for energy imports via TurkStream and Druzhba pipelines.

Orban said that there are no sanctions in place to restrict or increase the cost of supply for Hungary through these routes. Orban stated that this exemption was general and had no time limit.

According to figures from the International Monetary Fund, Hungary purchased 74% of gas and 86% oil in 2024 from Russia. The IMF warns that a cutoff of Russian gas across all of Europe could cost Hungary over 4% of GDP.

Orban stated that without the agreement energy costs would have soared, affecting the economy as a whole, increasing unemployment, and causing "unbearable price increases" for both households and businesses.

(source: Reuters)