US Grants Hungary Waiver from Sanctions for Paks II Nuclear Power Plant Project

The administration led by United States President Donald Trump has officially granted Hungary an exemption from financial sanctions previously imposed on the Russian Federation. This crucial decision clears the path for the state corporation Rosatom to continue its involvement in the construction of the Paks II nuclear power plant.

This significant policy shift was cemented following a meeting on November 7, 2025, in Washington, D.C., between the U.S. head of state and Hungarian Prime Minister Viktor Orbán, as Orbán subsequently announced. The sanction relief pertaining specifically to the Paks II project was formalized through a general license issued by the U.S. Department of the Treasury. This action underscores a pragmatic stance from Washington, prioritizing the energy security of a key European ally over the rigid enforcement of existing restrictions. U.S. Secretary of State Marco Rubio confirmed that the exception was explicitly made to guarantee Hungary's energy stability and ensure the completion of the nuclear facility.

The expansion plan for the Paks nuclear facility involves the construction of two new power units, each designed to generate 1200 MW. Rosatom is responsible for this undertaking, with the pouring of the first concrete anticipated in early 2026. This agreement provides a solid foundation for the long-term viability of the project, which is central to Hungary's enduring energy security and its ability to maintain regulated utility rates. Prior to this, in late June 2025, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) had already issued a temporary authorization—General License 115B—which permitted certain civilian nuclear energy transactions up until December 19, 2025.

The summit held in Washington on November 7, 2025, served as the backdrop for finalizing a broader strategic energy partnership between the United States and Hungary. As part of this comprehensive arrangement, Hungary committed to purchasing approximately 600 million dollars worth of liquefied natural gas (LNG) from the U.S. Furthermore, a separate agreement was struck with the American firm Westinghouse Electric Co. for the supply of nuclear fuel for the operational Paks I unit, valued at around 114 million dollars, with deliveries slated to commence in 2028. This Westinghouse deal is specifically designed to diversify the nation's fuel supply sources. Deepening cooperation also involves initiating discussions regarding the potential deployment of up to ten small modular reactors (SMRs) of American design within Hungarian territory.

Historically, the contract with the Russian Federation for the construction of Paks II was signed back in 2014, with the total projected cost estimated at 12.5 billion euros. The Trump administration's recent decision is widely viewed as a component of a larger diplomatic exchange, where a concession on sanctions is being traded for substantial, long-term energy contracts with American providers. Hungarian Minister of Foreign Affairs Péter Szijjártó verified that this understanding secures stable energy supplies for the nation, taking effect on November 21, the date when sanctions targeting Russian energy enterprises were originally scheduled to come into force.