Hungary to reassess Paks II nuclear expansion as new government seeks transparency under EU scrutiny

Hungary is preparing to reassess the long-delayed Paks II nuclear expansion project after the country’s new administration, led by Prime Minister Peter Magyar, announced a sweeping review linked to Russia’s nuclear sector. The decision matters for investors because it reopens questions about project costs, contract terms and governance—issues that have already drawn domestic political opposition and scrutiny from EU institutions.

Paks II: €12.5 billion plan with direct Rosatom award

The €12.5 billion Paks II project envisages the construction of two Russian-designed VVER reactors by Rosatom. For years, it has been among the closest strategic energy partnerships between Hungary and Russia inside the European Union.

Criticism has focused on how the deal was structured: Hungary awarded the contract directly to Rosatom in 2014 without an international tender. Opponents have argued that the approach raised concerns around transparency and financing terms.

New government review targets costs, contracts and implementation

Speaking before a parliamentary committee, Economy and Energy Minister nominee István Kapitány said the government intends to conduct a detailed review of the project’s financial structure, implementation costs, and contractual obligations. He said Hungary will continue to rely on nuclear energy as a core part of its electricity mix, but argued that future decisions must be grounded in transparency and accountability rather than confidential arrangements.

Kapitány also indicated that key agreements related to the project remain inaccessible to the current administration, requiring a full reassessment. He said the review is intended to address concerns about corruption risks and opaque decision-making processes surrounding Paks II.

Debate over pricing continues as Rosatom defends costs

Prime Minister Magyar has previously described the overall cost of the project as excessively high. Rosatom CEO Alexey Likhachev responded by defending the pricing structure, saying the company is prepared to justify all costs if requested by Hungary. He also reiterated that Russia remains committed to completing the nuclear project efficiently.

EU oversight may intensify after political transition

Energy analysts note that Paks II is the only major Rosatom nuclear project within the EU, frequently cited as an example of how a member state can maintain close energy cooperation with Russia while remaining within EU institutional frameworks.

Observers add that Hungary’s political transition could strengthen EU oversight and influence over strategic energy decisions—particularly as Brussels continues efforts aimed at reducing Europe’s dependence on Russian energy infrastructure and long-term partnerships.