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U.S. Exempts Hungary’s Paks-2 Nuclear Project From Sanctions to Allow Completion

Secretary of State Marco Rubio said the carve-out is intended to support Hungary’s energy independence.

Overview

  • Rubio confirmed the exclusion applies to the Paks-2 construction even though the project is being designed and built by Russia’s Rosatom.
  • He said the U.S. is considering one-year extensions to existing exceptions for oil and gas supplies.
  • Officials described the plant as already under construction and stressed the need to finish the planned reactors.
  • Earlier U.S. measures in November 2024 disrupted Gazprombank channels used for HungaryRussia energy and Paks-2 payments, prompting temporary exemptions.
  • Hungary’s existing Paks plant provides roughly half of domestic power generation, and two new VVER-1200 units would lift capacity from about 2,000 MW to 4,400 MW.