Brussels responds to Orbán–Trump energy deal that Washington and Budapest can’t agree on
The European Commission has confirmed that Hungary’s newly announced exemption from U.S. sanctions on Russian oil and gas imports will not affect the EU’s long-term energy strategy to completely phase out Russian fossil fuels by the end of 2027.
Following Prime Minister Viktor Orbán’s meeting with U.S. President Donald Trump in Washington, the Hungarian government declared that Hungary had been granted “unlimited and indefinite exemption” from American sanctions targeting Russian energy companies. Foreign Minister Péter Szijjártó and Orbán both stressed that the deal guarantees Hungary’s uninterrupted energy supply through key pipelines such as TurkStream and the Druzhba (Friendship) oil pipeline.
However, conflicting statements quickly emerged. According to multiple international news outlets, including Reuters, CNN, and BBC, the U.S. administration’s position differs significantly from Budapest’s narrative. Citing White House sources, Reuters reported that the exemption granted to Hungary is valid for only one year, not indefinitely as claimed by the Hungarian government. The White House reiterated this to Reuters over the weekend, confirming that “the waiver is for one year.”
Despite these contradictions, no official statement has yet been issued by the U.S. Department of State or the Treasury Department’s Office of Foreign Assets Control (OFAC), leaving the exact duration of the exemption uncertain.
Brussels distances itself from the Washington deal
In response to questions from Portfolio, the European Commission emphasised that the U.S.–Hungary agreement “falls entirely within the jurisdiction of the United States” and therefore has no bearing on EU energy or sanctions policy. The Commission made it clear that its goal to end imports of Russian oil and gas by 2027 remains unchanged.
A Commission spokesperson reminded that the EU had already introduced an embargo on Russian crude oil in 2022, while Hungary and Slovakia received temporary derogations due to their heavy dependence on Russian supplies. These exemptions, Brussels noted, were granted solely to safeguard energy security, not to provide economic advantages.
The spokesperson also pointed out that under the REPowerEU plan, the EU has sharply reduced its reliance on Russian energy. The share of Russian pipeline and liquefied natural gas (LNG) in the bloc’s total gas imports has fallen from 45% in 2021 to 19% in 2024, and is expected to drop further to around 13% by 2025, especially as the transit of Russian gas through Ukraine nears its end. Likewise, the share of Russian oil in EU imports plunged from 27% in early 2022 to just 3% by 2024, Portfolio writes.
EU remains firm on 2027 deadline
In May, the European Commission presented a proposal to completely phase out Russian fossil fuel imports by the end of 2027, with possible trade restrictions or tariffs introduced to discourage purchases. The plan also requires member states to prepare their own national exit strategies by the end of 2024. From that point onwards, no new contracts for Russian energy would be allowed, and existing long-term deals would end by 2027.
Hungary and Slovakia have repeatedly criticised these measures, citing concerns about energy security and national sovereignty. Szijjártó called the EU’s strategy “detached from reality” and argued that banning long-term gas contracts with Russia amounts to “a form of sanction.” He even suggested that Hungary might challenge the measure in the EU Court of Justice.
Orbán himself acknowledged after the Washington meeting that the dispute with Brussels is far from over.
“We have pulled ourselves out from under the American sanctions system,” he said. “The next battle will be over the European one, and that fight will take place in Brussels.”
A fragile diplomatic balancing act
For now, Hungary appears to be treading a delicate path between Washington, Brussels, and Moscow. While the claimed U.S. exemption (whether temporary or indefinite) may offer short-term relief for the country’s energy sector, it does not alter the European Union’s commitment to end dependence on Russian energy by 2027.
Until an official U.S. confirmation is released, the true duration and scope of Hungary’s exemption are unclear. What is certain, however, is that Brussels has no intention of revising its energy independence agenda in light of Orbán’s Washington deal.
Orban should enjoy and sav/steale as much money as he can. If he doesn’t want to follow the rules of EU, Then you need to leave. Thx good the nighwill be over next year
HUXIT! Being part of the EU is suicidal on many fronts.
Perhaps you want to talk to London and ask how that went for a country many magnitudes larger and wealthier than Hungary? I’ll give you a clue: not well. No, the UK didn’t collapse, few people predicted it would, but it has given rise to stagflation and long term handicapped the country’s growth prospects. The financial sector is some 20% smaller today than it was pre-2016 (the date of the referendum) which is a serious issue when it contributes an outsize percentage of tax revenue.
Hungary is an entirely exported dependent country and something like 75% of its output is destined for EU markets. Can you imagine the ramifications of losing access to the single market? In Hungary’s case it really would result in economic meltdown.