Camilla Jessen
Hungary confirms US sanctions have been lifted on its Russian-backed Paks II nuclear power plant.
Hungary’s long-delayed Paks II nuclear power project is moving forward again after the United States lifted sanctions that had previously hindered its development.
Hungarian Foreign Minister Péter Szijjártó announced the decision via Facebook on June 29, crediting the change to the current US administration.
Sanctions Lifted Under Trump Administration
Szijjártó stated that the sanctions were introduced during the administration of former President Joe Biden and had created complications for Hungary’s energy strategy.
In his statement, he attributed the reversal to President Donald Trump, who he said considers Hungary a friend.
“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.
Russia-Backed Nuclear Expansion
Paks is Hungary’s only nuclear power plant, located about 100 kilometers south of Budapest.
It currently operates four Soviet-designed VVER-440 reactors that were built between 1982 and 1987 and produce over 40% of Hungary’s electricity.
The Paks II project, led by Russia’s state nuclear corporation Rosatom, involves the construction of two new VVER-1200 reactors.
The contract for the project was signed in 2014, shortly after Russia annexed Crimea. A Russian state loan provides most of the financing.
Hungary has maintained its commitment to the Paks II project despite Russia’s full-scale invasion of Ukraine in 2022. In August 2022, Hungary issued a construction permit for the new reactors. In 2023, Rosatom CEO Alexey Likhachev visited Budapest to discuss the project’s progress with Hungarian officials.
Hungary has also consistently resisted European Union efforts to sanction Russia’s nuclear sector.
On March 11, Szijjártó criticized a Ukrainian drone strike on the Druzhba pipeline that temporarily disrupted Russian oil deliveries, calling it “an attack on Hungary’s sovereignty.” He warned that such actions posed a direct threat to the country’s energy security.
