Post by : Badri Ariffin

In a significant diplomatic development, US President Donald Trump has extended a one-year exemption from sanctions on Russian oil and gas to Hungary, providing much-needed support to Prime Minister Viktor Orban as he navigates economic challenges.

During a meeting with Orban at the White House, Trump emphasized the specific struggles faced by Hungary, a landlocked country reliant on Russian energy exports. “It’s particularly tough for him to source oil and gas from alternate regions,” Trump stated, elucidating the reasoning behind the provisional waiver.

This exemption comes on the heels of the US targeting two major Russian oil companies last month, a strategy meant to lessen global dealings with Russia. Nevertheless, Hungary will be allowed to proceed with its energy imports without incurring US penalties for the upcoming year.

Hungarian Foreign Minister Péter Szijjártó took to social media to confirm that Budapest had secured “a full and unlimited exemption,” although US officials specified that this waiver is limited to one year. Additionally, it includes a commitment from Hungary to purchase hundreds of millions of dollars of US natural gas, providing an avenue to reduce its dependence on Russian energy.

Orban, who has had a longstanding alliance with Trump, has utilized Hungary’s reliance on Russian energy pipelines as a crucial political strategy, assuring voters of continued access to “affordable Russian energy” ahead of next year’s elections. He maintains that these pipelines are essential, not merely political symbols, due to Hungary’s disadvantage in geographical access.

The two leaders also touched upon the ongoing situation in Ukraine, with Trump commending Orban's rapport with Russian President Vladimir Putin, remarking that the Hungarian leader “knows Putin very well” and might have a role in promoting peace. Orban countered that only Hungary and the US genuinely aim for a resolution, while other countries seem to be prolonging the conflict.

This development is anticipated to attract close attention in Europe, where several EU nations have criticized Hungary’s favorable approach towards Moscow during the Ukraine crisis. Trump’s decision highlights the power of political alliances in shaping international policy and Hungary’s capability to secure transitional relief in spite of wider Western sanctions.

#Business News #Economic