The US lifted sanctions on the Hungarian Paks nuclear power plant: what is behind the decision

The United States has lifted sanctions on the Paks nuclear power plant construction project in Hungary, which is being implemented by Russia’s Rosatom. Washington explains this by its desire to strengthen Budapest’s energy independence.

This was reported by the US State Department.

Secretary of State Marco Rubio said the plant was already under construction, which is why the US allowed the project to proceed despite its ties to a Russian contractor. He added that the US had also given Hungary a one-year waiver from sanctions on Russian oil and gas imports to avoid a sharp economic hit.

In response, Budapest pledged to purchase nuclear fuel from the American company Westinghouse for $114 million and LNG for $600 million.

The Paks-2 NPP involves the construction of two power units with VVER-1200 reactors with a total cost of 12.5 billion euros, of which 10 billion euros is provided by Russia in the form of a loan. The project was previously hampered by sanctions against Gazprombank and the Rosatom leadership, but in December 2024 – January 2025, the US lifted the blockade, which allowed construction to resume.

Earlier it was reported that US President Donald Trump allowed Hungary to export oil and gas from Russia, making an exception to sanctions.

As a reminder, Hungarian Prime Minister Viktor Orban said that Budapest should in every way defend the opportunity to purchase Russian oil and gas , since the country will not be able to replace these energy resources with other sources.

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