Donald Trump has exempted Hungary from sanctions over its continued purchases of Russian oil and gas for one year, a White House official has confirmed to BBC News.
Earlier, the US president said he would consider an opt-out for Hungarian Prime Minister Viktor Orban, a close Trump ally who has maintained good relations with Russia throughout the Ukraine war.
Speaking on Friday during Orban's visit to the White House, Trump said an exemption was under consideration because it's very difficult for him [Orban] to get the oil and gas from other areas.
This comes after the US effectively blacklisted two of Russia's largest oil companies last month, threatening sanctions on those who buy from them.
Following the meeting, Hungarian Foreign Minister Péter Szijjártó wrote on X that the US had given Budapest a full and unlimited exemption from sanctions on oil and gas.
An official later told the BBC that that exemption was time-limited to one year.
This decision by Trump marks a major victory for Orban, who had said the sanctions would ruin his country's economy.
During the public part of the meeting, Trump sounded sympathetic to Hungary's position as a landlocked country, dependent on oil and gas from Russia, but stopped short of giving a specific guarantee.
However, it became clear that the US president had granted an exemption for one year - seemingly flying in the face of his determination just two weeks ago to penalise anyone who did business with Russia's energy companies.
Hungary has agreed to buy several hundred millions of dollars of US natural gas as part of the arrangement, but it is a deal likely to go down badly in many European capitals, most of whom have long opposed Hungary's friendly stance towards Moscow.
Orban has long been a close personal and political ally of the president, echoing much of Donald Trump's populist right-wing rhetoric over immigration and social issues. This loyalty seems to have earned the Hungarian prime minister some special treatment as he faces difficult elections in the spring.
Trump added that while Hungary faced unique logistical challenges, including access to a sea that could be used to drill oil, he was very disturbed by other European countries that, he said, continued to buy Russian commodities despite not being landlocked.
Orban, who has long resisted EU efforts to pressure Moscow over Ukraine, defended his energy ties with Russia, stating that pipelines are neither ideological nor political, but a physical reality due to the lack of ports.
He has used his country's heavy dependence on Russian oil and gas to maintain good relations with Moscow and promote his re-election platform, promising voters cheap Russian energy.
Trump and Orban also discussed the war in Ukraine, including the possibility of holding talks with Putin. Trump noted, He [Orban] understands Putin and knows him very well... I think that Viktor feels we're going to get that war ended in the not-too-distant future.
The Hungarian leader, however, claimed that only their two nations truly wanted peace in the Ukraine conflict, stating that many other governments preferred to continue the war due to misconceptions about Ukraine's potential for victory on the battlefield.
As part of this energy deal, Trump urged Europe to respect this leader very, very strongly because he's been right on immigration, despite frequent clashes with EU leaders over various issues.
