Hungary approves 14th EU sanctions package, saves nuclear project

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 its 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 MW 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 13 billion USD, 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. Hungary also signed a cooperation agreement in this area with Belarus at the end of May.

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 over 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 June 24.