Hungary secured a complete exemption from EU sanctions on Russia for the construction of new blocks at the Paks nuclear power plant (NPP), Minister of Foreign Affairs and Trade Peter Szijjarto said during a break in a meeting of his EU peers in Luxembourg on June 24.

Szijjarto also complained about the way the EU is planning to circumvent Hungary’s veto on using profit from frozen Russian assets to help Ukraine.

The EU Foreign Affairs Council approved the 14th package of sanctions against Russia on Monday, 24 June, but Hungary received an exemption for the €12bn project by Russia's Rosatom to add two 1,200 MW blocks to Hungary's only commercial nuclear power plant, which has a total capacity of 2,000 MW.

This means European companies, including German, French and Austrian firms, can participate in the Paks 2 project without needing approval from their national authorities, he added. The exemption from the sanctions removes many obstacles and complexities, accelerating the project, he noted.

The largest greenfield investment in Hungary has suffered years of delay as Rosatom failed to meet strict EU safety guidelines. Hungary hopes that the two new blocks will be operational in the early 2030s.

On other issues, Szijjarto chided EU members for exploiting a legal loophole that allows circumventing Hungary's veto on the use of profits from frozen Russian assets.

Szijjarto said the EU’s decision to allocate an additional €1.4bn for weapons deliveries to Ukraine was made without considering Hungary's right to participate in the decision-making process, which he called a red line.

As Hungary abstained from the first such vote on their use, the Council's legal service, Brussels bureaucrats, and some member states thought that was a sufficient basis to disregard Hungary's decision-making right and ignore its position on the matter, he added.

On Monday, EU foreign ministers discussed this legal workaround, which is essential for implementing a G7 agreement to provide $50bn in loans to Ukraine by the end of the year. Josep Borrell, the EU's High Representative for Foreign Affairs and Security Policy, explained that since Hungary abstained from a prior agreement, it cannot be involved in decisions regarding the use of these funds, independent G7.hu portal reported. The loan repayment will rely on future revenues, particularly from frozen Russian assets.

The EU wanted to continue to "cross red lines" with a proposal to train Ukrainian soldiers on the territory of Ukraine, which Hungary continues to reject, he added.

Hungary continues to oppose freeing up some €6.5bn from the European Peace Facility for further weapons deliveries to Ukraine until authorities cease negative discrimination against Hungarian companies, he said, referring to efforts to revoke some of the licences of Hungarian pharmaceutical company Richter.

The Hungarian foreign minister touched on the upcoming Hungarian EU presidency, saying the focus will be on accelerating the enlargement process with the Western Balkans. Countries in the region have been waiting for membership for over 15 years, largely due to Western European countries citing "merit-based" obstacles. Hungary sees this approach as hypocritical in light of the different standards applied to Ukraine.

At the last mile of the Belgian presidency, the EU approved the opening of formal accession negotiations with Ukraine and Moldova last week. The accession conferences with these two countries, launching the process officially, will be held on June 25.