Unstable atom: construction of Paks-2 NPP is complicated by problems with banks

The United States and the European Union are putting enormous pressure on the Paks-2 NPP project in Hungary, making it difficult to provide banking services, Alexey Likhachev, head of the Rosatom state Corporation, told Izvestia. In particular, due to American sanctions, the pouring of concrete into the excavation is postponed. At the same time, Washington will consider the possibility of lifting restrictions against the power plant at the request of Budapest. The EU continues to threaten sanctions against the Russian nuclear industry, despite the disagreement of Hungary, Slovakia and even the countries of the anti-Russian camp. What are the chances of launching Paks-2? — in the Izvestia article.

The Paks-2 NPP project is under pressure from the EU and the USA

The Paks-2 NPP project in Hungary, carried out with the participation of Rosatom, is under tremendous pressure from the United States and the EU, the head of the state corporation Alexei Likhachev told Izvestia. Construction is hampered, among other things, by problems in the banking sector.

"The project is currently under such enormous pressure from the European Union and the United States of America, both directly and through banking services, that an additional decision is needed on its implementation and support, which the Hungarian government is very successfully engaged in," said Alexey Likhachev. — Of course, there are difficulties.

At the same time, the director of Rosatom expressed confidence that the launch of the nuclear power plant under construction "will definitely take place." So far, on March 29, the construction of the foundation pit for the first of the two power units has just been completed, however, the pouring of concrete into it is postponed.

The ceremony of pouring the first concrete, an important stage in the construction process, was supposed to take place before the end of the first quarter. According to some information, the Hungarian Atomic Energy Agency, which oversees the project and issues permits for each stage of work, has not yet given the green light.

According to Hungarian Foreign Minister Peter Szijjarto, the US sanctions imposed under Joe Biden against the Paks-2 project definitely slowed down construction and this prevented the first concrete from being poured. The minister called the Biden administration's decision an act of political revenge. At the same time, purely technical problems in the form of soil detachment at one of the sites are also indicated as the reason for the delay in filling.

Rosatom, in turn, is doing everything to ensure that the first concrete is poured in 2025. But not everything depends on the Russian side.

However, the situation is changing with the arrival of Donald Trump. At the end of April, it became known that the White House would consider the request of the Hungarian leadership to lift US sanctions on the Paks-2 NPP project. However, this step on the part of Washington, apparently, is dictated solely by potential economic benefits for the United States — it is this pragmatic approach that distinguishes the current American administration.

According to Magyar Nemzet, Hungary's Deputy Minister of Foreign Affairs and Foreign Economic Relations Levente Magyar discussed with Andrew Peak, Director General for Europe and Russia at the US National Security Council, the possibility of using American nuclear technologies in Hungary. It is likely that the lifting of sanctions against Paks-2 may become part of a future deal. It is worth noting that Donald Trump has long had good relations with Hungarian Prime Minister Viktor Orban.

— Recently, Orban has been waiting for investments from the United States, because we have very deep economic problems. And before the elections (elections in Hungary are expected as early as April 2026. — Izvestia) that will be the deciding factor. Budapest wants to cooperate with Washington in the field of small nuclear power plants. If the United States receives a corresponding proposal, the United States will not increase pressure on the entire Hungarian nuclear sector in principle," Hungarian political analyst Gabor Stier tells Izvestia.

Disagreements are growing in the EU over sanctions against Russia

The European Union has traditionally taken a completely opposite position, despite the disagreement of some members of the association.

"There are several fanatical member states in the EU who are trying to cram nuclear energy into every discussion of the sanctions package. We have opposed this so far and will not allow sanctions against the nuclear industry in Europe in the future," the Hungarian Foreign Minister said.

Peter Szijjarto has repeatedly stressed that restrictions against Russia harm Hungary's economic interests and violate the security of its energy supply, primarily threatening investments in the construction of a new nuclear power plant. In the future, this may increase disagreements between Brussels and Washington, which are already fueled by the Ukrainian crisis, Stier said.

Alexey Likhachev previously stressed that the threats of the European Union to impose sanctions on the Rosatom state corporation have been difficult to explain lately. "It rather seems to me that this is something from the series "I'll freeze my ears to spite my grandmother." And these plans, some kind of roadmaps to combat Rosatom, which they present, in my understanding, are rather sloganeering in nature," he commented.

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In the 17th package of sanctions recently adopted by the European Union, there are no restrictions against Rosatom. By the way, the head of the IAEA, Rafael Grossi, stressed that such measures would be "unrealistic and impractical" due to dependence on the Russian nuclear sector. According to him, the demand for uranium is growing, as is the presence of Russian capacities on the market, so sanctions "would stop the nuclear industry in many countries." Reducing dependence on the Russian nuclear sector will cost Europe "billions," he noted. It is important to emphasize that Rosatom provides 40% of the global enriched uranium market. Despite the EU's large-scale sanctions policy, for example, in 2023, the union doubled its purchases of nuclear fuel from Russia. The main buyers include five EU countries with Soviet—designed reactors: Finland, the Czech Republic, Bulgaria, as well as Slovakia and Hungary.

Ahead of the approval of the new package, Bratislava was not going to support restrictions against the Russian nuclear industry either. "The Slovak Republic will not vote for the adoption of new measures against nuclear energy: this is a very important issue for us. Our Prime Minister Robert Fico said that we will not vote for sanctions that will harm our economy," Marian Carey, head of the republic's parliament's international affairs committee, said back in April.

By the way, sanctions against the Russian nuclear industry are also opposed in the anti-Russian camp. Earlier, France, along with Hungary, blocked such restrictions, Politico reported. It is interesting that recently the government of the new German Chancellor Friedrich Merz officially changed its policy regarding nuclear energy: now such generation facilities are not considered dangerous. And the nuclear policy of the German authorities does not fit well with the sanctions policy towards the Russian nuclear industry.

Nevertheless, a couple of weeks ago, the European Commission presented a roadmap for the abandonment of gas and nuclear energy from the Russian Federation. In it, the EU, in particular, restricts the conclusion of new contracts for "the supply of uranium, enriched uranium and other nuclear materials coming from Russia." In fact, this is a refusal to cooperate with the Russian Federation in the field of nuclear energy.