“We asked the president to lift the sanctions,” Mr Orban said.
“We agreed and the president decided”.
The restrictions come as Trump seeks an end the ongoing Russia-Ukraine war.
Mr Orban, a long-time Trump ally, met with the President at the White House on Friday for their first bilateral meeting since the Republican returned to power.
Mr Orban said the use of Russian oil sources was vital for Hungary.
The US President appeared sympathetic to Mr Orban’s position, saying “it’s very different for him to get the oil and gas from other areas”.
“As you know, they don’t have…the advantage of having sea,” said Mr Trump.
“It’s a great country, it’s a big country, but they don’t have sea. They don’t have the ports.
“But many European countries are buying oil and gas from Russia, and they have been for years. And I said, ‘What’s that all about?'”
In addition to the sanctions exemption, Hungary committed to buying U.S. liquefied natural gas with contracts valued at around $600 million.
Hungary has maintained its reliance on Russian energy since the start of the 2022 conflict in Ukraine – a move which has been criticised by several European Union and NATO allies.
During their Washington meeting, the pair also discussed ending the conflict in eastern Europe.
Mr Orban said that EU insistence on pursuing total victory on the battlefield for Ukraine was unrealistic.
When asked by Trump whether he thought Ukraine could not win the war, Mr Orban said perhaps a “miracle can happen”.
