Hungary drops sanctions block over nuclear deal with russia

Prime Minister Viktor Orban's Hungarian government has agreed to the 14th package of sanctions against Russia in exchange for the exclusion of measures threatening Rosatom's expansion of the nuclear power plant in Paks, reports the Hungarian editorial office of Radio Free Europe.

Radio Free Europe reported on Thursday, citing its sources, that the Hungarian government has ceased blocking EU sanctions on Russian liquefied natural gas (LNG) supplies after receiving assurances that the expansion project of their only nuclear power plant will not face future restrictions.

Russian state-owned company Rosatom is building two new nuclear power plant units in Paks, central Hungary, with a capacity of 1,200 megawatts each. The project, named Paks II, is one of Orban's government's key energy initiatives. The total investment value is expected to be around £10 billion, with 80% of the costs covered by a Russian loan.

Budapest regularly reiterates that it will block any sanctions package that includes cooperation in the nuclear energy sector. At the end of May, Hungary also signed a cooperation agreement in this area with Belarus.

In exchange for a general exemption for Paks II, Orban’s government conceded on the first EU measures targeting the Russian gas sector since the beginning of the war in Ukraine - reported Radio Free Europe.

Previously, Budapest excluded supporting any punitive measures against the Russian gas sector due to supply security concerns.

After more than a month of negotiations, EU countries agreed on Thursday to the 14th sanctions against Russia. European Commission President Ursula von der Leyen announced that the new restrictions are intended to hinder the Kremlin's access to technology and limit its revenue from energy exports.

The new tranche of measures targeting Russia is expected to be approved by the foreign ministers of the EU member states at a meeting in Luxembourg, scheduled for 14:00 GMT on 24 June.