Hungary has signed a long-term agreement with U.S. energy major Chevron to boost its liquefied natural gas (LNG) supplies, as the country seeks to diversify its energy sources amid pressure to cut reliance on Russia.

Under the deal, Hungary’s state-owned energy company MVM Group will receive a total of 2 billion cubic metres of LNG from Chevron over five years, equivalent to about 400 million cubic metres annually. The agreement was confirmed on Tuesday by Hungary’s Foreign Minister, Péter Szijjártó.

Hungary has repeatedly clashed with other European Union and NATO members over its stance on Russian energy, arguing that it cannot quickly replace Russian oil and gas. Despite this position, Budapest says it is working to broaden its supply options to improve energy security and control costs.

Szijjártó said the agreement represents a key step in strengthening energy cooperation between Hungary and the United States, adding that the government aims to source energy from as many suppliers and transport routes as possible to keep prices competitive.

The deal comes as the European Union moves forward with plans to phase out Russian gas imports by the end of 2027, a policy Hungary has openly opposed. Nevertheless, Hungarian officials maintain that alternative supplies, including LNG, are essential to safeguard the country’s energy needs.

Last month, Hungary said it had secured a temporary exemption from U.S. sanctions to continue using Russian oil and gas. While Budapest described the waiver as open-ended, U.S. officials later said it would last only one year and noted that Hungary had committed to purchasing U.S. LNG under contracts worth around $600 million.

MVM’s chief executive has said the company could meet Hungary’s gas demand even if Russian supplies were disrupted, though consumers would likely face higher prices.