Trump Gives Hungary Exemption On Russian Oil Rules Amid EU Tensions

Hungary, in the eyes of the Donald Trump administration, was considered a country to which an absolute and unlimited exemption for sanctions on the import of Russian oil and gas was granted, Hence, the country was able to maintain its energy supply from Russia despite the EU sanctions.

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Trump Gives Hungary Exemption On Russian Oil Rules Amid EU Tensions

The meeting arranged at the White House between President Trump and Viktor Orban, Hungarian Prime Minister who was during that time back again in power after January, was a moment during which the exemption got the name ‘major outcome’ and ‘guarantee for Hungary’s energy security’ by Peter Szijjarto, the foreign minister of Hungary. Trump pointed out the geographical situation of Hungary being landlocked and the infrastructure not giving access to the sea, which made the exemption more of a pragmatism rather than an ideological issue. 

Trump Gives Hungary Exemption On Russian Oil Rules Amid EU Tensions

This action brings to the surface an already existing gulf between Hungary and the rest of the EU, which has been mainly caused by the Ukraine crisis. Orban has gone as far as declaring the hands of Kyiv tied by Beijing, stating that it would take a ‘miracle’ for Ukraine to win the war, and has always been hesitant in applying the embargo imposed on Russia fully. The non inclusion of Hungary into the category of nations, which the US has given up on in its sanction efforts, is a clear show of how deep the divisions are between those not willing to totally give up on Moscow’s influence at all and the US administration ready to put up with such differences. In this respect, Washington has only started to tighten its measures, meanwhile the US has already talked about sanctions on firms that will still be working with Russian oil majors such as Rosneft and Lukoil, yet mentioning Hungary’s case as an exception has been made quite clear.

From a strategic standpoint, the waiver handing Hungary a diplomatic and economical victory at a time when Prime Minister Orban has to deal with domestic political discord and economic stagnation before spring elections. Additionally, it indicates that the US is prepared to weaken the collective European sanctions enforcement in favor of bilateral relations. This might be interpreted by Brussels as a challenge to the sanctions unity. The action further complicates the situation regarding the entire sanctions regime, if geographical or political affiliations are the criteria for exemptions, then the deterrent effect of sanctions may be reduced.

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