In a significant shift, Hungary’s newly appointed administration under Prime Minister Peter Magyar has initiated a comprehensive review of the contentious €12.5 billion Paks II nuclear power plant expansion project. This project, which involves the construction of two Russian-designed VVER reactors by Rosatom, has long been at the center of Hungary’s energy strategy, fostering a close relationship between Hungary and Russia within the EU framework.
The direct awarding of the contract to Rosatom in 2014 without an international tender has drawn criticism from both domestic political factions and European Union institutions. Concerns have been raised regarding transparency and financing terms associated with this strategic energy partnership.
In addressing parliamentary members, István Kapitány, the nominee for Economy and Energy Minister, emphasized that the new government will undertake a thorough examination of the project’s financial structure, implementation costs, and contractual obligations. While reaffirming Hungary’s commitment to nuclear energy as a vital component of its electricity generation mix, he stressed that future decisions need to prioritize transparency and accountability over confidential dealings.
Kapitány highlighted that essential documents concerning the project remain inaccessible to current officials, necessitating a complete reassessment. The review aims to mitigate concerns regarding corruption risks and opaque decision-making processes that have plagued the project.
The overall cost of Paks II has been described by Prime Minister Magyar as excessively high. In response, Rosatom’s CEO Alexey Likhachev defended their pricing model, asserting that they are prepared to justify all expenses if requested by Hungarian authorities. He reiterated Russia’s commitment to ensuring the project’s efficient completion.
Paks II stands out as the only major Rosatom nuclear initiative within the EU, often cited as an example of how member states can maintain close energy ties with Russia while navigating European institutional frameworks. Energy analysts suggest that Hungary’s political transition may enhance EU oversight and influence over its energy policy decisions. This is particularly relevant as Brussels intensifies efforts to diminish Europe’s reliance on Russian energy infrastructure and long-standing partnerships.
