US removes Russia sanctions which prevented main NPP construction in Hungary
(MENAFN)
The United States has lifted sanctions that had previously blocked financial transactions through Russia’s Gazprombank connected to the construction of Hungary’s Paks-2 nuclear power plant. On Friday, the U.S. Office of Foreign Assets Control (OFAC) issued a general license permitting civil nuclear-related dealings involving Gazprombank and several other major Russian financial institutions.
The United States has lifted sanctions that had previously blocked financial transactions through Russia’s Gazprombank connected to the construction of Hungary’s Paks-2 nuclear power plant. On Friday, the U.S. Office of Foreign Assets Control (OFAC) issued a general license permitting civil nuclear-related dealings involving Gazprombank and several other major Russian financial institutions.
The Paks-2 project, launched in 2014 as part of a bilateral agreement between Hungary and Russia, includes two new reactors built by Rosatom and is financed mostly through a €10 billion Russian loan. Construction had stalled due to U.S. sanctions that restricted transactions via Gazprombank, prompting Hungary to repeatedly request a waiver from Washington.
Hungarian Foreign Minister Peter Szijjarto confirmed the decision on Sunday, criticizing earlier politically motivated sanctions that hindered Hungary’s energy plans. “The U.S. had put Hungary in a very tough position,” he said, claiming the sanctions had effectively halted the project. He welcomed the shift in U.S. policy, crediting the new American administration for treating Hungary as a friend.
Szijjarto emphasized that the Paks-2 plant is crucial to Hungary’s long-term energy independence, with plans for it to cover the majority of the country's electricity needs by the 2030s.
Hungary has consistently opposed EU and Western energy sanctions against Russia since the Ukraine conflict intensified in 2022. It relies heavily on Russian gas and oil through exemptions negotiated with the EU, and has recently blocked Brussels’ proposal to phase out Russian gas imports by 2027, citing national energy security concerns.
The OFAC license also removes civil nuclear-related restrictions on Russia’s central bank and major banks such as Sberbank, VTB, Alfa-Bank, VEB, Otkritie, and Rosbank. The move comes amid improving U.S.-Russia relations and renewed diplomatic efforts to end the Ukraine conflict.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
