A Year Without Sanctions for Hungary — New Challenges for Ukraine?

08.11.2025

The United States has granted Hungary a one-year exemption from sanctions on Russian oil and gas. The decision came after Hungarian Prime Minister Viktor Orbán met with U.S. President Donald Trump in Washington, Reuters reports. At first glance, it may seem like a technical measure. But for Ukraine, it carries real political and strategic risks.

From left: US vice-president JD Vance, Viktor Orbán, prime minister of Hungary, and US President Donald Trump in the White House / AFP via Getty Images
From left: US vice-president JD Vance, Viktor Orbán, prime minister of Hungary, and US President Donald Trump in the White House / AFP via Getty Images

Hungary’s Energy Leverage in Europe

Earlier, the U.S. president said he would consider a special arrangement for Orbán, who has maintained good relations with Russia during the war in Ukraine. Ultimately, the U.S. allowed Hungary to continue using Russian energy resources. This is a small but important victory for Orbán. Hungary remains one of the EU countries most dependent on Russian energy. The Druzhba and TurkStream pipelines supply the country with oil and gas. The one-year allowance enables Budapest to continue using these supplies without the threat of U.S. sanctions.

Illustrative photo. Druzhba pipeline / Getty Images
Illustrative photo. Druzhba pipeline / Getty Images

At the same time, Hungary reached a deal with Westinghouse to supply nuclear fuel for the Paks I nuclear power plant and plans to purchase liquefied natural gas (LNG) from the United States to diversify its energy sources. These steps effectively give Orbán more leverage in European energy discussions.

It is also worth noting that, against this backdrop, the Hungarian prime minister raised the topic of possible peace talks in Budapest. For now, these are only proposals. But the very discussion demonstrates Hungary’s intent to position itself as a potential mediator. Analysts warn that without clear guarantees, such talks could serve political goals rather than genuine progress.

What It Means for Ukraine

Exempting any country from sanctions, even for a year, weakens pressure on the Kremlin and gives Moscow additional resources to continue the war. For Kyiv, this is a signal that any proposals for talks in Budapest must be approached with extreme caution. Ukraine also needs to continue persuading partners of the importance of sanctions unity. Experts note that Hungary could use this year to strengthen its political position within the EU and influence European decision-making.

Illustrative photo. A model of a pump jack is seen in front of the displayed word "Sanctions", U.S. and Russia flag colours in this illustration taken March 8, 2022 / REUTERS, Dado Ruvic
Illustrative photo. A model of a pump jack is seen in front of the displayed word “Sanctions”, U.S. and Russia flag colours in this illustration taken March 8, 2022 / REUTERS, Dado Ruvic

Conclusion

A year without sanctions is temporary but politically significant. Hungary gains room to maneuver between Washington, Brussels, and Moscow. Ukraine must remain vigilant. Every exception reduces the overall impact of sanctions. It is important to note that this one-year allowance does not lift sanctions for other countries. So Kyiv needs to ensure that temporary permissions do not turn into new risks for European security or the effectiveness of the sanctions regime.

Author: Alina Ohanezova | View all publications by the author