Hungary is considering a plan to abandon the Russian company Rosatom—the primary contractor for the planned expansion of the Paks Nuclear Power Plant—and has begun searching for alternative suppliers, reports Reuters.The project, which Hungarian Prime Minister Viktor Orbán awarded to Rosatom in 2014 without a competitive tender, is politically sensitive and extremely costly. Climate change has added further uncertainty regarding its future; in August, low water levels in the Danube nearly forced the shutdown of the existing reactors at the Paks plant. The expansion of the Paks Nuclear Power Plant is currently the largest nuclear energy project in the European Union. Finland terminated its contract with Rosatom in May 2022, a few months after Russia’s full-scale invasion of Ukraine, leading to an ongoing legal dispute between the two countries. Under Orbán’s leadership, Hungary has opposed any sanctions against the Russian nuclear energy sector.The government, led by Prime Minister Péter Magyar, is expected to reach a final decision regarding the Paks Nuclear Power Plant either late this year or early next year. The costs of the expansion project were initially estimated at 12.5 billion euros; however, by the time the first section of the foundation was poured this February, the project had already cost the state more than two billion euros.A spokesperson for the Hungarian government and Rosatom did not immediately respond to a request for comment from Reuters. When asked whether an assessment of the project could lead to a change in the main contractor, a person familiar with the matter indicated that all scenarios are being considered. The assessment will examine the legal, technical, and financial implications—as well as the impact on project timelines—of replacing the contractor, and will also evaluate whether the project is financially viable at all.The original contract with Rosatom has been amended five times, and a sixth amendment has been drafted but not yet signed. In 2025, a European court annulled the European Commission’s approval that would have permitted the allocation of state funds to the project.Another source close to the government stated that, while the government leans toward the view that the expansion of the Paks Nuclear Power Plant is necessary, it believes Rosatom should not be involved. Nuclear reactors can generate large amounts of energy with virtually no carbon emissions; however, nuclear power plants require vast quantities of cool water, making them highly vulnerable during droughts and heatwaves—events that have become more frequent due to climate change. Despite the costs and complexity, Orbán’s pro-European government remains a staunch advocate for nuclear energy, which it needs to meet growing demand.Since Russia’s full-scale invasion of Ukraine in February 2022, EU member states have largely ceased the import of Russian oil and natural gas. Rosatom, however, has managed to avoid sanctions. Should the Hungarian government decide to end its cooperation with Rosatom, it would face the loss of 1.1 million euros already paid, and would likely be required to pay penalties for breach of contract.
Hungary considers ending cooperation with Russia’s Rosatom
