US removes Russia’s sanctions of Hungary’s Paks-2 nuclear plant construction
(MENAFN) The United States has lifted sanctions that previously blocked financial dealings through Russia’s Gazprombank connected to Hungary’s Paks-2 nuclear power plant project. A general license issued by the US Office of Foreign Assets Control (OFAC) on Friday permits Gazprombank and several other Russian banks to engage in transactions “related to civil nuclear energy.”
The Paks-2 project, initiated in 2014 through a bilateral agreement, includes two reactors built by Russia’s Rosatom and is backed by a €10 billion ($11.7 billion) Russian loan, covering most of the estimated €12.5 billion ($13.4 billion) cost. This plant is considered essential to Hungary’s energy security and was planned to begin operations last year near the existing Paks nuclear facility, which currently provides about half of Hungary’s electricity. However, US sanctions on Gazprombank, the bank financing the project, forced a halt in construction. Hungary had repeatedly requested a waiver from Washington.
On Sunday, Hungarian Foreign Minister Peter Szijjarto confirmed that the US had removed the sanctions.
“The US made numerous decisions on political grounds that placed our country in an extremely difficult situation,” Szijjarto said. “One of these decisions sought to undermine Hungary’s energy supply by imposing restrictions on the construction of the Paks-2 NPP, making it virtually impossible for construction to continue.”
He further noted, “Fortunately, since January, there has been a president in Washington who views Hungary as a friend.”
“In light of this, the US government has lifted sanctions related to the Paks nuclear power plant investment,” Szijjarto added. He emphasized that Paks-2 “guarantees Hungary’s secure energy supply,” and will enable the country to meet most of its electricity needs by the mid-2030s.
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