Hungary Receives Unexpected Relief: US Lifts Sanctions on Nuclear Plant Expansion in Cooperation with Rosatom
The Hungarian government delivered surprising news: the United States officially announced the lifting of sanctions that previously hindered the planning and implementation of a major project to expand the Paks nuclear power plant. According to Foreign Minister Péter Szijjártó, this significant development was implemented during the Trump administration, while the prior restrictions were imposed under President Biden's leadership. This move allows for an acceleration of construction works at the site, located on the Danube River south of Budapest, a project involving Russia's state nuclear corporation Rosatom. For years, the project faced legal obstacles and delays, complicating its realization. Hungarian Prime Minister Viktor Orbán has repeatedly clashed with European colleagues over close ties with Russia, particularly regarding energy supplies from Moscow. Szijjártó noted that despite progress in nuclear energy, disputes with the EU concerning oil and gas procurement are likely to persist. He emphasized that key components for Paks are manufactured in France and Russia, with onsite construction now able to proceed at a faster pace. Official confirmation from the US has yet to be received, sources have clarified. A year ago, Hungary signed an agreement with Belarus to assist in constructing a Hungarian nuclear station. The current project with two reactors, totaling 2.4 gigawatts, has been developed by Rosatom since 2014, with an estimated cost of 12.5 billion euros. This endeavor is among the largest and most complex in Hungary’s energy sector, despite nuclear energy not being under EU sanctions against Russia. Hungary still depends heavily on Russian energy, and the government opposes expanding sanctions in this sphere, citing economic and energy security concerns.