US Sanctions Lifted: Hungary Can Resume Construction of Paks II Nuclear Power Plant!
Hungarian Minister of Foreign Affairs and Trade Péter Szijjártó has finally brought good news for Hungary and its energy future. After months of blockades and political games, the United States has lifted sanctions that had been blocking the expansion works of the Paks nuclear power plant. Yes, you read that right – the US administration has finally removed the brakes and allowed the continuation of a project vital for Hungary’s energy stability.
Sanctions that blocked the entire project
Since last year, US sanctions have been a stumbling block for the construction of two new VVER reactors with a capacity of 1.2 gigawatts at Paks. These sanctions were politically motivated and directly blocked the works, which Hungary sharply criticized. Szijjártó emphasized that the US decision was “politically motivated” and that the project blockade meant multiple times higher bills for citizens and industry.
Who is behind the Paks II project?
The Paks II project is huge and involves the Russian state nuclear corporation Rosatom through its subsidiary Nizhny Novgorod Engineering, as well as French companies Framatome and EDF. Despite sanctions, the works proceeded slowly, but now, with the lifting of sanctions, construction is expected to accelerate.
Why is this important for Hungary?
Hungary plans to cover most of the energy demand in households and industry with Paks II. Without this project, electricity bills could skyrocket, and energy stability would be jeopardized. Szijjártó stressed that this is a matter of national interest and that the expansion of the nuclear power plant is crucial for the country’s future.
US OFAC and permits for Russian financial institutions
The US Office of Foreign Assets Control (OFAC) issued a general license for certain transactions related to civil nuclear energy, including Russian financial institutions such as the Russian Central Bank, Vnesheconombank, and Gazprombank. This further facilitated the continuation of the Paks II project, as financing is now possible without fear of US sanctions.
European Commission and regulatory permits
The European Commission approved amendments and supplements to the construction and financing contract in May this year, while the Hungarian regulator issued a permit for the construction of the fifth and sixth reactors at the end of August last year. Everything is ready for the continuation of works, and Russian Atomstroyexport has already started the main construction phase at the end of August.
What does this mean for Europe and the world?
While the world struggles with an energy crisis and geopolitical tensions, Hungary has managed to find a way to continue its nuclear project with Russian and French partners despite US pressures and sanctions. This is a clear signal that energy policy and geopolitical interests often go hand in hand, and small countries like Hungary must balance between great powers to secure their energy future.
A new era or just another political game?
Now that sanctions are lifted, it remains to be seen how quickly the works will progress and whether Hungary will achieve its energy goals. But one thing is certain – this decision will spark a storm of reactions in Brussels, Washington, and Moscow. Will this be the beginning of new energy cooperation or just another political maneuver? Time will tell.
Conclusion
Hungary has received the green light to continue building the Paks II nuclear power plant, a big step towards energy independence and stability. The US lifting of sanctions has removed the burden from the Hungarian government and enabled the continuation of a project that, if all goes according to plan, will provide energy for households and industry for decades to come.
What do you think about this US turnaround? Is it a smart move or just another geopolitical game? Drop a comment, spark a debate, and remember – energy is power, and power is in the hands of those who control it! 😉
