August M
Hungary’s incoming government is preparing to reassess the controversial expansion of the Paks nuclear power plant, a move that could threaten one of Russia’s largest remaining energy projects inside the European Union.
Digi24.ro reported that officials in Budapest plan to review the financing, contracts and implementation of the multi-billion-euro agreement involving Russian state nuclear giant Rosatom.
Nuclear deal questioned
The Paks-2 project was originally signed in 2014 under former Prime Minister Viktor Orbán without an international tender process.
According to Digi24.ro, the agreement covers the construction of two new nuclear reactors by Rosatom with an estimated value of more than €12.5 billion, equivalent to roughly $14.7 billion.
István Kapitányi, nominated for the role of Hungary’s economy and energy minister, said the new government wanted a “transparent nuclear strategy.”
“We need to review the financing and costs of the ‘Paks-2’ project and the conditions for its implementation,” he said during parliamentary hearings.
Secret contracts targeted
Kapitányi also claimed parts of the agreement remain hidden from public scrutiny.
“There are secret contracts that we have not yet become familiar with and that we need to study,” he said, according to Reuters.
Prime Minister Peter Magyar, who took office after April’s elections, has also pledged to investigate the project and examine allegations of inflated costs and corruption linked to the previous administration.
Rosatom faces uncertainty
The Paks nuclear facility, located south of Budapest, currently operates four Soviet-era reactors built during the 1970s and 1980s.
The expansion project would add two new Russian-designed VVER-1200 reactors with a combined capacity of 2.4 gigawatts.
Rosatom announced earlier this year that construction had officially entered the next stage after the pouring of “first concrete” for reactor unit five.
EU legal pressure grows
Digi24.ro reported that the European Union’s Court of Justice previously annulled the European Commission’s approval of Hungary’s financial support package for the project.
Judges ruled Brussels should have examined whether awarding the contract directly to Rosatom complied with EU procurement rules.
According to the financing structure, Rosatom would provide €10 billion in funding while Hungary contributes €2.5 billion.
The review now raises fresh uncertainty over one of Moscow’s last major strategic infrastructure investments in Europe.
Sources: Digi24.ro, Reuters, European Court of Justice.
