The US Treasury Department has officially confirmed the issuance of a general license, which allows Hungary to carry out financial transactions with Russian banks within the framework of the construction of the Paks II nuclear power plant.
Points of attention
- This decision to allow financial transactions with key Russian financial institutions highlights the complexities of economic interdependence and the strategic considerations at play in the geopolitics of energy projects like the Paks II NPP.
- Journalists note that the US decision comes amidst intensified negotiations between the US and Hungary, shedding light on the intricate dynamics shaping US foreign policy towards Russia and its allies.
Sanctions pressure on Russia has begun to weaken
A new statement from the US department says that the general license provides an exception to existing US sanctions against Russia, which were imposed in response to its war of aggression against Ukraine.
What is important to understand is that this authorization will generally cover financial transactions that are currently important for the implementation of the Paks II NPP project in Hungary.
De facto sanctions will be eased for the main Russian financial institutions involved in this process.
In particular, the license covers transactions involving Gazprombank, VTB Bank, and the Central Bank of the Russian Federation. These institutions provide financing and support for the project, which has been implemented by the Russian state corporation Rosatom since 2014 on the basis of an intergovernmental agreement between Budapest and Moscow.
Journalists draw attention to the fact that the decision of the American authorities was made against the backdrop of intensified negotiations between the United States and Hungary in the field of energy and security.
