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Hungary Says U.S. Lifts Nuclear Project Sanctions
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Hungary Says U.S. Lifts Nuclear Project Sanctions

Hungary's foreign minister said Sunday that the United States had lifted sanctions against the expansion of Hungary's Paks nuclear power plant, a long-delayed project under limits imposed by former President Joe Biden. The plant is Hungary's sole nuclear power site and is important to the country's national energy strategy, highlighting the strategic role of the Hungary nuclear power plant.

Hungary Says U.S. Lifts Nuclear Project Sanctions
By Iwo Mazur | Last Updated: 2 Jul 2025
Foreign Minister Péter Szijjártó said the sanctions, which were directed against the Paks-2 modernization project, had all but halted work. He praised President Donald Trump for lifting the restrictions, saying, "Thankfully, a president has now been sitting in the White House who has regarded Hungary as an ally," a sentiment strongly echoed by the Hungary government.

The Role of Russia in the Paks-2 Project
Under the Paks-2 project, two new reactors are being built, with Russia extending a loan to Hungary that would finance 80% of the €12bn construction. Hungary is to return the loan over 21 years. The Russian state corporation Rosatom is highly involved in the process.

The project was held up when the Biden administration issued sanctions in 2024 that, among other things, focused on Gazprombank — the financial avenue Russia and Hungary were using for related transactions. These sanctions had the effect of bringing the plant to a virtual standstill.

Construction and Energy Security Ahead
The Biden-era sanctions were viewed by Szijjártó as an effort to undermine Hungary's energy security in the long term. Now Hungary expects to build without hindrance, with the announced lifting of restrictions, he said.

Now, the plant's main components are being made in Russia and France. With those developments, the project was free to proceed, though the United States has yet to publicly acknowledge the lifting of the sanctions.
 

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