Hungarian Prime Minister Viktor Orban announced that his country has secured a “financial shield” from the United States following high-level talks with President Donald Trump, aimed at protecting Hungary’s economy amid ongoing tensions with the European Union and international sanctions.

The announcement came after Orban met with Trump at the White House on Friday, during which the leaders discussed economic support, energy security, and bilateral trade agreements. According to Orban, the arrangement provides Hungary with a one-year exemption from certain sanctions, as well as assurances from the U.S. that it would defend the country’s financial stability in the event of external economic pressures.

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Details of the Financial Shield

Orban shared the news in a video posted by the Hungarian outlet index.hu, stating:

“Should there be any external attacks against Hungary or its financial system, the Americans gave their word that in such a case, they would defend Hungary’s financial stability.”

A White House official confirmed that the deal also includes contracts worth approximately $600 million for Hungary to purchase U.S. liquefied natural gas (LNG), a move aimed at bolstering Hungary’s energy independence and diversifying its energy sources.

Orban did not provide specific operational details of the “financial shield,” but claimed it would ensure Hungary faces no financing problems, adding that potential attacks on Hungary’s currency or budget should no longer be a concern.

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Context: Hungary’s Economic and Political Challenges

The deal comes at a time of economic stagnation in Hungary and strained relations with the European Union, which has frozen billions of euros in funding due to concerns about Hungary’s democratic backsliding. Critics have accused Orban of leveraging his close ties with Washington to circumvent EU pressure and secure alternative financial support.

Hungary’s economy has faced challenges since Russia’s full-scale invasion of Ukraine in 2022, though the Hungarian forint has shown some recovery this year, aided by high interest rates and targeted financial interventions.

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Energy and Sanctions Relief

During the White House meeting, Orban also secured an exemption from U.S. sanctions on Russian energy, a significant concession given Hungary’s reliance on Russian oil and gas. The exemption, combined with the LNG contracts, aims to shield Hungary from potential supply disruptions and stabilize domestic energy markets.

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Trump’s Support for International Allies

The U.S.-Hungary agreement aligns with President Trump’s broader strategy of supporting far-right or nationalist leaders abroad. Trump has extended similar backing to Argentina’s President Javier Milei, including a $20 billion currency swap deal to stabilize Argentina’s economy and strengthen its central bank’s reserves.

Milei, a frequent U.S. visitor since taking office in December 2023, faces challenges including high inflation, national debt, and dwindling foreign reserves. Trump has pledged additional measures, such as purchasing Argentinian pesos, to support Milei’s economic policies.

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Implications for Hungary and the EU

The agreement signals a deepening U.S.-Hungary partnership that could circumvent EU oversight while reinforcing Hungary’s economic sovereignty. Analysts suggest the deal may reduce Brussels’ leverage over Budapest and provide Orban with a financial lifeline amid growing domestic and international scrutiny.

By securing both financial protections and energy assurances, Orban strengthens Hungary’s position in ongoing EU disputes, while simultaneously deepening bilateral relations with the United States under Trump’s administration.