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US Lifts Sanctions, Clearing Path for Russia’s Nuclear Expansion in Hungary

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US Lifts Sanctions, Clearing Path for Russia’s Nuclear Expansion in Hungary
Workers prepare the foundation for Russia-supplied reactors at Hungary’s Paks II nuclear plant, October 2024. (Source: Getty Images)

Hungarian Foreign Minister Péter Szijjártó announced that the United States has lifted sanctions that previously restricted the construction of the Russian-built Paks II nuclear power plant in Hungary.

According to Szijjártó, the sanctions were originally introduced under the administration of former US President Joe Biden and had complicated Hungary’s long-term energy plans.

In a statement published on June 29, Szijjártó credited current US President Donald Trump for reversing the measures, calling the decision a step toward ensuring Hungary’s future energy security.

“In light of the fact that there is now a president in Washington who considers Hungary a friend, the American government has lifted sanctions related to investments in the Paks nuclear power plant,” Szijjártó said.

The Paks nuclear power plant is Hungary’s only nuclear facility, located about 100 kilometers south of Budapest. It currently operates four Soviet-designed VVER-440 reactors, commissioned between 1982 and 1987, and generates over 40% of the country’s electricity.

The Paks II expansion project—overseen by Russia’s state nuclear corporation Rosatom—includes the construction of two additional VVER-1200 reactors.

The contract for the project was signed in 2014, shortly after Russia’s annexation of Crimea. The majority of the financing comes from a Russian state loan.

Despite Russia’s full-scale invasion of Ukraine in 2022, Hungary has maintained its commitment to the project. In August 2022, the Hungarian government issued a construction permit for Paks II, and in 2023, Rosatom CEO Alexey Likhachev visited Budapest to discuss further steps with Hungarian officials.

Hungary has consistently opposed efforts within the European Union to impose sanctions on Russia’s nuclear sector.

Earlier, on March 11, Hungarian Foreign Minister Péter Szijjártó condemned a Ukrainian drone strike on the Druzhba pipeline as an “attack on Hungary’s sovereignty,” after the incident forced a temporary halt in Russian oil deliveries. He warned the strike posed a direct threat to Hungary’s energy security.

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