Hungary could face compensation claims worth billions of euros if it ends its agreement with Russia’s Rosatom for the Paks II nuclear project, an assessment cited in the report says. Nuclear energy expert Zsolt Harfas said liabilities could go beyond reimbursement for work completed. They could also cover engineering, equipment already manufactured and expected profits under the existing contract.
Valued at more than €10 billion, Paks II is intended to increase Hungary’s domestic nuclear generation capacity. Harfas drew a comparison with Finland’s Hanhikivi project, where developer Fennovoima terminated a contract for a Russian-designed VVER-1200 reactor in 2022. Subsequent arbitration findings have raised concerns over the financial consequences of ending similar agreements.
Cancellation would leave Hungary with two major issues: the contractual cost of terminating the Rosatom agreement and the need to replace the electricity expected from the new reactors. The supply question is particularly significant because Hungary depends on electricity imports.
Potential costs and power supply
Potential liabilities remain estimates, not established claims, and would depend on the contract and any subsequent legal proceedings. Given the project’s scale, cancellation could have long-term implications for state finances and Hungary’s power balance.
