U.S. Eases Sanctions for Hungarian Nuclear Project

The U.S. Treasury Department issued a license permitting certain transactions for Hungary's Paks II nuclear plant project, despite ongoing sanctions against Russia. This licensing allows dealings with some Russian banks, following a nuclear cooperation agreement between the U.S. and Hungary for purchasing American nuclear fuel.

The United States, in a significant diplomatic maneuver, has issued a Russia-related general license facilitating specific transactions concerning Hungary's Paks II civil nuclear power plant project. This development was announced through the Treasury Department's website on Friday.

The license provides crucial exceptions to the sanctions imposed by the U.S. on this project due to Russia's involvement in the war on Ukraine. It allows dealings connected to the nuclear project with select Russian financial entities, including Gazprombank, VTB Bank, and Russia's central bank. This follows Hungary's recent agreement with the U.S. regarding nuclear power collaboration, marked by a meeting between former President Donald Trump and Hungarian Prime Minister Viktor Orban.

As part of the agreement, Hungary is set to procure American nuclear fuel and technology for storing spent nuclear material at its existing Paks I plant, indicating a strengthening of strategic energy ties between the nations.

(With inputs from agencies.)