Hungary could face compensation claims worth billions of euros if it ends its agreement with Russia’s Rosatom for the Paks II nuclear project, according to an assessment cited in the report. The project is valued at more than €10 billion and is intended to increase Hungary’s domestic nuclear generation capacity.
Potential contractual liabilities
Nuclear energy expert Zsolt Harfas said potential liabilities could cover more than reimbursement for completed work, extending to engineering, equipment already manufactured and expected profits under the existing contract. He compared the possible dispute with Finland’s Hanhikivi project, where developer Fennovoima terminated a contract for a Russian-designed VVER-1200 reactor in 2022. Subsequent arbitration findings have raised concerns about the financial consequences of ending similar agreements.
For Hungary, cancelling Paks II would raise two major issues: the contractual cost of terminating the Rosatom agreement and the need to replace the electricity the new reactors were expected to produce. The latter is particularly significant because Hungary depends on electricity imports. Potential liabilities remain estimates, not established claims, and would depend on the contract and any subsequent legal proceedings; the project’s scale means cancellation could have long-term implications for state finances and Hungary’s power balance.
