Hungary is considering replacing Russian state corporation “Rosatom” as the main contractor for the expansion of the Paks nuclear power plant (NPP) and is already studying alternative suppliers.
This is reported by Reuters, citing two sources.
Reuters sources did not name potential new contractors, but one said a European supplier would simplify foreign policy and sanctions issues, although project management challenges would remain.
The government of Prime Minister Peter Magyar plans to make a final decision on the expansion of the nuclear power plant in late 2026 or early 2027. The review will assess the legal, technical and financial implications of a possible replacement of the contractor, the impact on the construction schedule and the economic feasibility of the project.
The project was initially estimated at €12.5 billion. Before the first concrete was poured in February 2026, Hungary had already spent more than €2 billion on the project, of which €1.1 billion was paid to “Rosatom”. If the government decides to abandon the Russian corporation, the country will likely have to factor in these costs and possible penalties for terminating the contract.
The initial agreement with “Rosatom” was amended five times. A 6th amendment was prepared but not signed. In addition, in 2025, the Court of Justice of the European Union annulled the European Commissionʼs decision approving state aid for the project.
While the nuclear power plant expansion is on hold, Budapest is also considering extending the operating licenses of its four existing Russian-made reactors by 20 years, which expire in 2032-2037.
- Following Russiaʼs full-scale invasion of Ukraine in 2022, EU countries reduced imports of Russian oil and gas, but Rosatom has not yet been subject to EU sanctions. According to the World Nuclear Association, in 2025, Russia accounted for about 23% of the EUʼs supply of uranium enrichment services and 16% of natural uranium supplies.
- The expansion of the Paks NPP is Rosatomʼs most prominent nuclear project in the European Union after Finland terminated its contract with the Russian company in May 2022.
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