In a significant policy shift, Hungary’s new government, under Prime Minister Peter Magyar, has initiated a comprehensive review of the contentious €12.5 billion Paks II nuclear power plant expansion project. This project, which involves the construction of two VVER reactors by the Russian state-owned company Rosatom, has been a focal point of Hungary’s energy strategy and its relationship with Russia within the European Union.
The direct award of the contract to Rosatom in 2014, bypassing an international tender process, has drawn criticism from various stakeholders, including domestic political opponents and EU regulatory bodies. Concerns have been raised regarding transparency and the financial terms associated with this substantial investment.
During discussions with a parliamentary committee, Economy and Energy Minister nominee István Kapitány outlined the government’s intent to scrutinize the project’s financial framework, implementation costs, and contractual commitments. He affirmed Hungary’s ongoing reliance on nuclear energy as a vital component of its electricity supply but stressed that future decisions must prioritize transparency and accountability over previously confidential agreements.
Kapitány highlighted that critical documents related to the Paks II project are currently inaccessible to the new administration. This lack of information necessitates a thorough reassessment to mitigate concerns surrounding corruption risks and non-transparent decision-making processes.
<pPrime Minister Magyar has voiced concerns regarding the overall expense of the Paks II project. In response, Rosatom's CEO Alexey Likhachev defended the project’s cost structure, asserting that the company is ready to provide justification for all expenses if required by Hungarian authorities. He reiterated Russia’s commitment to ensuring the project’s timely completion.
Energy analysts emphasize that Paks II is currently the only major nuclear initiative by Rosatom within the EU. It serves as a pertinent example of how Hungary can maintain close energy ties with Russia while still being integrated into European institutional frameworks.
As Hungary undergoes this political transition, observers suggest that there may be an increase in EU oversight and influence over its strategic energy decisions. This shift aligns with broader efforts by Brussels to decrease Europe’s reliance on Russian energy resources and long-term partnerships.
