Hungary Weighs Replacing Rosatom on €12.5bn Paks Project

Hungary’s government is reviewing whether to replace Russia’s Rosatom as the main contractor for the Paks II nuclear expansion, and has begun sounding out alternative suppliers. Prime Minister Péter Magyar’s administration is expected to decide later this year or in early 2027; one source said it considers the expansion necessary but would prefer to proceed without Rosatom. The review is assessing the project’s financial viability and the legal, technical and scheduling consequences of a supplier change, with no replacement publicly identified. The project was originally estimated to cost €12.5 billion, and Hungary could lose about €1.1 billion already paid to Rosatom and face additional costs if it terminates the contract. The project also faces uncertainty after a European court annulled approval for its state aid, while Rosatom says work is continuing under the agreed schedule.