• Hungary has received a one-year exemption from US sanctions on Russian oil and gas.
• Prime Minister Viktor Orban emphasized the critical need for Russian energy supplies.
• The US is pushing Hungary to diversify its energy sources, including purchasing US liquefied natural gas.
• Orban's exemption aims to prevent severe economic repercussions before upcoming elections.

Hungary has been granted a one-year exemption from US sanctions on Russian oil and gas as part of a deal reached during Prime Minister Viktor Orban's meeting with US President Donald Trump. This marks a significant relief for Hungary, which heavily relies on Russian energy imports and faces a challenging economic landscape amid an upcoming election cycle, according to SCMP and India Times.

During the bilateral meeting, Orban explained the logistical difficulties Hungary faces due to its landlocked geography and lack of ports, which complicate sourcing alternative energy supplies. Trump noted, “It’s very different for him to get the oil and gas from other areas,” thereby acknowledging Hungary's predicament, as reported by BBC and Reuters.

While Orban celebrated the exemption, the White House reaffirmed that it is not indefinite, asking Hungary to diversify its energy sources, including a commitment to purchase around $600 million worth of US liquefied natural gas. This contract underscores the strategic efforts from the US to reduce European dependency on Russian energy, according to Al Jazeera and Channel News Asia.

The exemption has been crucial for Orban, who faces political pressure at home. Without this reprieve, he warned that Hungary's economy could suffer tremendously, leading to soaring costs for households and businesses, and increasing unemployment rates. IMF data has indicated Hungary's heavy reliance on Russian energy, with 74% of its gas and 86% of its oil derived from Russian sources, as elaborated by SCMP and Reuters.