The US allowed Hungary to carry out certain transactions for the Paks-2 NPP, even with the participation of Russian sanctioned banks
The United States has issued temporary licence, which allows Hungary to conduct certain financial transactions related to the construction of a nuclear power plant «Pax-2», even if these transactions involve Russian banks under sanctions. This was reported by Reuters.
The licence does not lift the restrictions in general, but creates exception for transactions only, The government has provided the necessary funds to continue work at the site. This allows Budapest to maintain the contract with Rosatom, the main contractor of Paks-2, despite the sanctions risks.
Why it is important for Hungary
The Paks-2 project is a strategic one for Prime Minister Viktor Orban, as it should provide the country with additional energy capacity and reduce dependence on imported gas. The construction is being financed mainly by Russian loans, so sanctions barriers have effectively blocked the flow of funds.
US position
According to Reuters, Washington decided to grant the exemption to avoid complete freezing of the project, but retained the ban on any other transactions with sanctioned banks and non-nuclear power plant entities.
US officials emphasised that the licence is temporary and can be cancelled at any time.
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