Hungary

US Lifts Sanctions on Hungary's Russian-Backed Nuclear Plant

Published JUN 30 2025

Story

Above: Workers prepare the ground for the substructure of the fifth and sixth blocks of the Paks 2 nuclear power plant near Hungary, with reactors supplied by Russia's Rosatom, on Oct. 9, 2024. Image credit: Attila Kisbenedek/Contributor/AFP via Getty Images

The Facts

Hungarian Foreign Minister Péter Szijjártó announced June 29 that the United States had lifted sanctions on the expansion of Hungary's Paks nuclear power plant, which had been imposed during the Biden administration and hindered the Russian-backed project's development.
Hungary Today
TVP World
The Paks II project involves the construction of two new nuclear reactors by Russia's state-owned Rosatom corporation, with Russian financing covering 80% of the €12 billion ($14 billion) cost through a state loan that Hungary must repay within 21 years.
TVP World
Ukrainska Pravda
Financial transactions for the project were conducted through Russia's Gazprombank, which came under U.S. sanctions in 2024 following Russia's invasion of Ukraine, effectively halting investment in the nuclear plant expansion until the recent lifting.
TVP World
TASS
Paks serves as Hungary's only nuclear power plant, currently operating four Soviet-designed reactors that produce over 40% of the country's electricity, with the expansion project seen as crucial for Hungary's long-term energy security.
Ukrainska Pravda
Dagens.com
Ukrainian officials disputed the Hungarian claims, with sanctions commissioner Vladyslav Vlasiuk calling Szijjártó's statements "manipulation" and asserting that the US has not actually lifted sanctions but issued new licenses for civilian nuclear transactions.
RBC
The Kyiv Independent
The project represents one of the key reasons Hungary has consistently opposed European Union sanctions targeting Russia's nuclear sector, maintaining its commitment to the expansion despite Russia's ongoing war in Ukraine.
Dagens.com
Ukrainska Pravda

Sources Split

LEFT

CENTER

RIGHT

ESTAB
CRIT

CENTER

PRO
ESTAB

The Spin

Narrative A

The Biden administration's politically motivated sanctions targeted Hungary's energy independence and forced the country into an impossible position. Trump's decision to lift these restrictions shows real friendship and ensures Hungarian families will continue paying the lowest utility bills in Europe.

TASS

Hungary Today

Narrative B

Hungary's claims about lifted sanctions appear to be a misleading spin, as U.S. officials haven't confirmed any policy changes, and the project remains a concerning example of Russian influence in European energy infrastructure during wartime.

TVP World

The Kyiv Independent