Hungarian Prime Minister Viktor Orban and an unnamed US official confirmed President Donald Trump's decision after a meeting between the two leaders at the White House on November 7.
After lunch with President Trump, Prime Minister Orban told reporters that Hungary had won a "common, indefinite exemption" for purchasing Russian oil and gas via two main pipelines.
While most European Union (EU) member states have sought to cut back on Russian energy after Russia launched the conflict in Ukraine, Hungary has increased its dependence on Russian oil and gas.
President Donald Trump has also sanctioned other countries that buy Russian energy, including India, saying the deals disrupt US efforts to end the conflict in Ukraine. Earlier this year, the US imposed a 50% tariff on Indian goods.
The latest deal also benefits President Donald Trump, as Hungary agrees a series of US energy investments.
President Donald Trump praised Prime Minister Viktor Orban for doing a great job and called him an excellent leader as well as publicly supported Mr. Orban for re-election in the Hungarian election in April.
The US president also agreed with Prime Minister Viktor Orban's argument that Hungary - a landlocked country - does not have many alternatives to Russian energy. Previously, US officials pointed out that Hungary could still import oil via the Croatian trade pipeline leading from the Adriatic Sea.
They have no seas, no ports, Trump said before the meeting with Mr. Orban, saying it would be difficult for Hungary to find energy outside of Russia.
On November 7, within the framework of Prime Minister Viktor Orban's working trip to the US, Hungary signed a contract worth 100 million USD with the US corporation Westinghouse Electric to purchase nuclear fuel for the country's nuclear power plant.
Foreign Minister Peter Szijjarto said that Hungary is also negotiating a 5-year contract to buy liquefied natural gas (LNG) from the US. The two sides are also discussing plans to buy up to 12 small nuclear reactors (SMRs) in a deal that could be worth up to 20 billion USD, although Hungary could buy less than that figure.
The deal could change the landscape of the Russia-led nuclear power plant expansion project in Hungary, which has been delayed for years. According to a source familiar with the matter, Russian corporation Rosatom plans to start pouring concrete for the new furnaces in February next year, nearly 12 years after signing the nuclear contract.
