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Cooling towers at a nuclear power plant in Dukovany, Czech Republic, shown in an illustrative image.
Hungary Weighs Replacing Russia's Rosatom in Nuclear Plant Expansion
BUDAPEST/WARSAW — October 21, 2026
Hungary is considering replacing Russia's state-owned nuclear company Rosatom as the main contractor for the expansion of its Paks nuclear power plant, as the government reviews the project's costs, legal risks and long-term viability. Officials have begun exploring alternative suppliers, according to two people familiar with the matter.
The review concerns a project originally valued at €12.5 billion that was awarded to Rosatom in 2014 without a competitive tender by the government of then-Prime Minister Viktor Orban. A final decision is expected later in 2026 or early in 2027, according to people familiar with the government's plans.
The expansion is politically sensitive because Hungary has maintained close energy ties with Russia despite the European Union's efforts to reduce its reliance on Russian energy following Moscow's invasion of Ukraine in February 2022. Rosatom's role in the project has also become more uncertain as Hungary's new government reassesses major decisions made under Orban.
One person involved in the review said the government was examining all possible outcomes, including changing the main contractor. The assessment is expected to consider the legal, technical and financial consequences of replacing Rosatom, as well as the impact on the construction schedule and the project's overall viability.
A second person close to the administration said the government was leaning towards keeping the expansion because Hungary needs additional electricity, but without Rosatom's involvement. Neither source identified a potential replacement supplier.
Rosatom said it was continuing work according to the agreed schedule and that manufacturing of major equipment for the planned reactors was underway. The company said it had received no formal notice that Hungary intended to terminate the contract and argued that there were no legally justified grounds for doing so.
The project has faced repeated changes and legal complications. The original contract has been amended five times, while a sixth amendment has been prepared but remains unsigned. In 2025, the European Court of Justice annulled the European Commission's approval of state aid for the expansion, adding another obstacle to the project's progress.
Hungary has already spent more than €2 billion on the project by the time the first concrete was poured in February 2026. Of that amount, €1.1 billion had been paid to Rosatom, according to the report. If Hungary decides to remove the Russian company, the country could face the loss of payments already made and possible financial penalties for breaking the contract.
Despite the uncertainty surrounding the expansion, Prime Minister Peter Magyar's pro-European Union government supports nuclear power as part of Hungary's long-term energy strategy. Magyar won a landslide election victory in April 2026, bringing a change in government after Orban's years in office.
Hungary relies heavily on imported energy and wants to increase domestic electricity production. Nuclear power can provide a steady supply of electricity with very low direct carbon emissions, helping balance renewable sources whose output varies with weather conditions.
Zsuzsa Beres, deputy state secretary responsible for nuclear energy and international relations at the Economy and Energy Ministry, said nuclear power and its supply chain offered important opportunities to strengthen Hungary's own capabilities. She added that the country would continue to depend heavily on nuclear energy.
The existing Paks plant also faces challenges from extreme weather. A drought in August 2026 brought its reactors close to a shutdown, highlighting how low water levels and high temperatures can affect nuclear facilities that require large volumes of cooling water.
While the expansion remains under review, Budapest is also exploring a possible 20-year extension of operating licences for the plant's four existing Russian-built reactors. Their current licences expire between 2032 and 2037, making an extension one possible way to maintain electricity supplies while longer-term plans are decided.
Rosatom's position in Hungary is part of a wider European debate over nuclear cooperation with Russia. EU countries have reduced imports of Russian oil and gas since the invasion of Ukraine, but Russian nuclear fuel and related services have largely avoided the same level of sanctions.
The World Nuclear Association estimates that Russia accounted for about 23% of the EU's uranium enrichment deliveries and 16% of its natural uranium supply in 2025. A European replacement for Rosatom could make the Paks project easier to manage in foreign-policy and sanctions terms, one source said, although the technical and management challenges would remain.
Hungary's review will determine whether the country can retain its planned nuclear expansion while changing its main contractor, or whether the legal costs and practical difficulties make that approach too complicated. Until the government reaches a decision, Rosatom remains the project's contractor.
