Trump: 'Green light for Hungary on Russian oil'

Energetic handshakes and great compliments at the White House between Donald Trump and Viktor Orban. The American president and the Hungarian premier are united by their exuberant character, their underlying populism, they resent migrants, they are distrustful of the European Union and they both hate Joe Biden. They like each other, they agree on almost everything: what divides them, however, is their ties with Russia and their judgement on the invasion of Ukraine. Trump, ever since he broke with Vladimir Putin, has been trying to bend the Kremlin by hitting, with sanctions and threats to the whole world, Russia's biggest asset: oil. Orban cannot do without Moscow's oil and gas, they are indispensable for the Hungarian economy: and therefore he cannot afford to break with Putin.

That is why the Magyar leader sought - and eventually found - in talks at the White House a concession on the oil Hungary buys from Russia. "We're looking at it, we're looking at the possibility of Hungary being exempt from sanctions, it's difficult for them to get gas and oil from elsewhere, they don't have the advantage of having the outlet to the sea and the ports," Trump said. He added: "If you look at what's going on in Europe, there are countries," he attacked, "that don't have the problem of Hungary and buy a lot of oil and gas from Russia. I am very bothered by this because we help them and they go and buy Russian oil and gas."

Orban explained that he went to the White House 'to clearly explain what the consequences would be for the Hungarian people and economy, what it means not to take gas and oil from Russia. We are supplied by oil pipelines that are not a political or ideological issue are a physical reality,' he said, explaining that 'negotiations are ongoing, because this is a vital point for us'.

Analyses by the International Monetary Fund show that Hungary is dependent on Russia for 74 per cent of its gas needs and 86 per cent of the oil it uses: the Fund's experts also warned that a Europe-wide interruption of Russian natural gas alone could cause production losses in Hungary worth more than 4 per cent of GDP. And dependence on Moscow, according to the Atlantic Council group, has even increased since Putin launched his invasion of Ukraine in 2022. For the rating agency S&P Hungary has one of the most energy-intensive economies in Europe, with a worrying vulnerability to an energy shock, although it could turn to gas supplies from Azerbaijan and Qatar. Hungary's oil refining company, Mol, reported on the sidelines of the budget that a pipeline from Croatia could be an alternative to Russian oil arriving via Ukraine.

Orban's Hungary has also concluded an agreement with the US on nuclear energy, also to replace Russia's presence, which has invested more than ten billion dollars in the Paksi Atomeromu power plant south of Budapest. "The one with the US is an important nuclear cooperation agreement," said Hungarian Foreign Minister Peter Szijjarto.