United States (US) President Donald Trump has granted Hungary a one-year exemption from American sanctions on Russian oil and gas, marking a diplomatic victory for Prime Minister Viktor Orban and signalling a softer line towards Moscow from Washington.

The decision follows Orban’s visit to the White House last week. During the meeting, Trump said Hungary faced: “very difficult” energy constraints as a landlocked country heavily dependent on Russian supplies. While Hungarian Foreign Minister Péter Szijjártó claimed the waiver was: “full and unlimited,” officials in Washington later clarified that it would last only one year.

The exemption allows Hungary to continue importing Russian energy despite US measures blacklisting two of Russia’s largest oil companies last month. As part of the arrangement, Hungary agreed to buy several hundred million dollars’ worth of US natural gas, a deal that could ease some of the political backlash in Europe but is likely to deepen tensions within the European Union.

Trump’s move appears to contradict his earlier pledge to penalise all nations doing business with Russian energy firms. European leaders, long critical of Hungary’s pro-Moscow stance, are expected to view the decision as undermining collective Western efforts to isolate Russia.

Speaking after the meeting, Orban defended his country’s reliance on Russian energy, calling it a: “physical reality” rather than a political choice. He also echoed Trump’s view that peace talks with Moscow are essential, saying: “only the United States and Hungary truly want peace” in Ukraine.

The exemption comes as Orban faces national elections next April and seeks to deliver on promises of: “cheap Russian energy” to Hungarian voters.