Hungary Considers Replacing Rosatom as Contractor for Nuclear Power Project

en.Wedoany.com Reported - On October 21, the Hungarian government is reassessing the Paks Nuclear Power Plant Phase II expansion project, which had an originally planned investment scale of EUR 12.5 billion, and has begun contacting other potential suppliers to study the option of replacing Rosatom with a non-Russian enterprise as the project's main contractor. The project plans to build two 1,200-megawatt-class nuclear power units. The government is reviewing the existing contract, construction costs, and contractor adjustment plans, and plans to make a decision by the end of 2026 or early 2027.

The Paks Nuclear Power Plant Phase II expansion project was agreed upon by the Hungarian government and the Russian side in 2014, and the original contract included two units using Russian VVER-1200 reactor technology. The project entered the first concrete pouring stage in February 2026, at which point Hungary's cumulative investment had exceeded EUR 2 billion. The existing contract has undergone five amendments, and the text of the sixth amendment has been drafted but not yet signed.

This review involves the legal responsibilities, engineering and technical continuity, financing arrangements, and construction schedule after changing the contractor. Under the original agreement, Russia provides up to EUR 10 billion in state financing. Hungary has already paid approximately EUR 1.1 billion to Rosatom, and terminating the existing contract also involves the handling of payments already made and potential penalty costs.

Rosatom responded that the Paks II project is still being implemented according to the schedule agreed with the owner, and the manufacturing of main equipment for the two additional units is underway. The company has not yet received a formal notice from the Hungarian side regarding termination of the contract, nor does it recognize that there are legal grounds for terminating the contract at this stage.

The project review also involves the cooling water supply for the nuclear power plant. In August 2026, a sustained drought caused water levels in the Danube to drop, and the existing Paks Nuclear Power Plant units were once close to a complete shutdown. The Hungarian government has included the operational capability of the cooling system under low-water-level conditions in the review of the expansion project. In 2025, the Court of Justice of the European Union annulled the European Commission's previous approval decision on the state aid scheme for the project.

Hungary is also studying the extension of operating licenses for the existing four nuclear power units. The licenses for these units will expire successively between 2032 and 2037, and the government is considering applying to extend their operating period by another 20 years to maintain the existing nuclear power supply capacity.