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U.S. Exempts Hungary’s Paks-2 Nuclear Project From Russia Sanctions

Rubio says the carve-out aims to bolster Hungary’s energy independence.

Overview

  • U.S. Secretary of State Marco Rubio confirmed that the Paks-2 build has been excluded from sanctions so construction can be completed.
  • The project’s design and construction are led by Russia’s state company Rosatom, and work on the new units is reported to be underway.
  • Rubio said officials are considering a one-year extension of certain exceptions related to oil and gas supplies.
  • Earlier U.S. measures in November 2024 disrupted HungaryRussia payments via Gazprombank, and a prior exception later faced a potential year-end expiry.
  • Hungary’s existing Paks plant supplies roughly half of national power generation, and two new VVER-1200 reactors would raise total capacity to about 4,400 MW.