Key facts
- Hungary is reviewing the Paks nuclear project and considering alternative suppliers to Rosatom.
- A decision on the Paks expansion is expected by early next year.
- Rosatom stated it has received no formal notification of contract termination.
- The European Court of Justice annulled state aid approval for the project.
- Hungary is also exploring extending licenses for existing Russian-built reactors.
Hungary is contemplating replacing Russia's state nuclear firm Rosatom as the primary contractor for the expansion of its Paks nuclear power plant, according to two individuals familiar with the matter. The government is undertaking a review of the project and has begun exploring alternative suppliers. The Paks expansion, initially awarded to Rosatom without a tender in 2014, is a significant and costly undertaking. This review comes after Finland canceled its contract with Rosatom in May 2022, leading to legal disputes. The current Hungarian government, led by Prime Minister Peter Magyar, is expected to finalize its decision on the project's future by early next year. Rosatom stated that it has not received any formal notification of contract termination and believes there are no legally justified grounds for such a decision, adding that production of key equipment is proceeding as scheduled.