Hungary appreciates the United States for revoking restrictions on the nuclear energy facility, named "Paks."
The United States has lifted sanctions on the expansion of Hungary’s Paks nuclear power plant, a move that is expected to give new momentum to the project and revitalize Hungary’s bilateral energy cooperation with the U.S.
The sanctions, imposed by the Biden administration, targeted Russia's Gazprombank, which was involved in financing the project. The sanctions had made it difficult to continue constructing the Paks II nuclear power plant, causing procurement difficulties for certain parts and technologies.
The sanctions revocation was announced by Hungary’s Minister of Foreign Affairs and Trade, Péter Szijjártó, who credited the previous Trump administration for the policy shift that led to lifting the sanctions. The news was reported by Liter.kz.
Regarding the current status of the construction, major equipment production for the plant is ongoing in Russia and France, and Hungary aims to produce a significant share of its electricity from Paks II by the middle of the next decade. With the restrictions removed, construction on-site is anticipated to accelerate.
The Paks nuclear power plant, located in Hungary, is currently producing more than half of the country's electricity. The project, which began in 2022, involves the construction of two new blocks using Russian technology. Upon completion, the plant will enable Hungary to become a major player in the energy sector.
The new reactors (VVER-1200) will contribute substantially to reducing CO2 emissions compared to fossil fuel plants, making the project strategically important for Hungary’s long-term energy security and climate goals. However, there is ongoing debate about environmental and waste management aspects.
The Paks nuclear power plant was built during the Soviet era and is being overseen by Russia's Rosatom. The European Union approved the construction of the new blocks in 2014. The sanctions on the Paks nuclear power plant were initially imposed by the previous U.S. administration.
The lifting of sanctions is seen as a sign of the U.S. government's friendship towards Hungary, according to Péter Szijjártó. The current U.S. administration treats Hungary as a friend, he stated. The Paks nuclear power plant expansion project remains strategically important for Hungary’s long-term energy security and climate goals.
- The revocation of sanctions on the Paks nuclear power plant expansion by the Biden administration signals a policy shift that could give new momentum to Hungary's collaborative efforts in finance, industry, and energy with the U.S..
- The sanctions, originally imposed by the previous U.S. administration, had caused procurement difficulties for certain parts and technologies, potentially impacting the general news narrative surrounding the project's progress.
- The removal of sanctions could accelerate construction on-site, positively affecting policy-and-legislation discussions in Hungary as the new reactors aim to contribute substantially to Hungary's energy sector, climate goals, and long-term energy security, while also reducing CO2 emissions.
