U.S. lifts sanctions on Hungary’s Paks II nuclear project, easing financial roadblocks
The U.S. has lifted sanctions on Hungary's Paks II nuclear power plant project, allowing financial transactions to resume and removing a major obstacle for the scheme. The decision comes after months of complications caused by U.S. restrictions targeting Russian firms involved in the construction, such as Rosatom and Gazprombank. Hungarian officials confirmed the move, signaling a shift in U.S. policy toward the controversial energy project.
The sanctions were initially imposed in November 2024, freezing payments linked to Russian entities. Banks worldwide halted transactions involving Rosneft, Lukoil, and Russian state institutions like the Central Bank. Even dollar-denominated deals faced delays due to fears of secondary penalties.
With the sanctions lifted, financial hurdles for Paks II should ease. The U.S. decision allows transactions to resume, clearing a path for construction to advance. Hungary's reliance on Russian expertise for the project remains, but the shift in U.S. policy removes a significant finance-related barrier.
