Hungary Weighs Replacing Rosatom on Paks Nuclear Expansion, Reuters Says

Hungary is considering replacing Russia's Rosatom as main contractor for the Paks nuclear power plant expansion and has started sounding out alternative suppliers, Reuters reported on Oct 21, citing two people. Rosatom said on Oct 23 that it hopes to stay on.

The government of Prime Minister Peter Magyar is reviewing the project and is expected to make a final decision later this year or early next year, according to Reuters. A person familiar with the review said all scenarios were on the table. A second source close to the administration said the government was leaning toward concluding that the expansion is necessary but that Rosatom should not be involved. The sources named no new supplier, and a Hungarian government spokeswoman did not immediately respond to Reuters.

A Rosatom spokesperson told Reuters the company has received no formal notification of any intention to terminate the contract and sees no legally justified grounds for one. The company said it continues to implement the project on the agreed schedule and that production of the main equipment for the future power units is underway. On Oct 23, Rosatom said it hoped Hungary would stick with it but respected the government's right to decide. Rosatom head Alexei Likhachev said Hungary was continuing its audit and that uncertainty about the outcome persisted, according to Reuters.

Paks Expansion Cost and Contract Exposure

The project was originally estimated to cost EUR 12.5 billion, and Hungary had spent more than EUR 2 billion by the time first concrete was poured in February, Reuters reported. Should the review end in a decision against Rosatom, Hungary could have to absorb the EUR 1.1 billion paid to Rosatom so far, plus any penalties for breach of contract. The contract with Rosatom has been amended five times, and a sixth amendment was prepared but not signed, according to Reuters.

The 2014 award went to Rosatom without a tender under former prime minister Viktor Orban. A 2025 ruling by the European Court of Justice annulled the European Commission's approval of state aid for the project. The review is meant to weigh the legal, technical, financial and timing consequences of changing supplier, and whether the project is financially viable.

What it means for Hungary's power supply

The Paks expansion is meant to add new units alongside the four Russian-built reactors already running at the site. As a stopgap, Budapest is exploring a 20-year extension of the operating licences for those four reactors, which expire between 2032 and 2037, Reuters said. In August, a drought led to a near shutdown of the existing reactors, a reminder that the current fleet is exposed to cooling-water limits. A Hungarian official, Zsuzsa Beres of the Economy and Energy Ministry, said the country will continue to rely heavily on nuclear energy.

Swapping the main contractor would not remove the delivery risk. One source told Reuters that a European supplier would simplify the foreign-policy and sanctions context, but that the project management challenges would stay the same. Rosatom has avoided EU sanctions, and Russia supplied about 23% of the EU's enrichment deliveries and 16% of its natural uranium in 2025, according to World Nuclear Association data cited by Reuters. Voltgrid News reported earlier on Rosatom's Uzbekistan plant.

What is not confirmed yet

Hungary has not confirmed that it will drop Rosatom, and no alternative contractor has been identified. The cabinet decision is not expected before late 2026. Until then, the main signals to watch are whether the sixth contract amendment is signed, whether a licence-extension application for the existing reactors is filed, and whether any other vendor is named.