Hungary to reassess Paks nuclear expansion amid policy shift

Monday 11 - 10:45

Hungary’s incoming government has announced plans to review the financing and implementation of the expansion project at the Paks Nuclear Power Plant, signaling a possible shift in the country’s energy and foreign policy direction.

The statement was made by Istvan Kapitany during a parliamentary hearing following the recent election victory of the new administration. He called for greater transparency regarding the project’s contracts, financing structure and overall costs.

The Paks 2 expansion project, estimated at around 12.5 billion euros, was awarded in 2014 to the Russian state nuclear company Rosatom without an international tender process. The project includes the construction of two Russian-designed VVER nuclear reactors intended to strengthen Hungary’s long-term energy production capacity.

Over the years, the initiative became a symbol of the close political and economic relationship between Hungary and Russia under former Prime Minister Viktor Orban. However, the new government led by Peter Magyar has pledged to improve relations with the European Union and increase transparency in strategic national projects.

Speaking before lawmakers, Kapitany stated that the government must carefully examine the financial terms and implementation conditions of the expansion plan. He noted that several agreements linked to the project remain confidential and require further evaluation.

The review comes at a time when many European countries are reassessing energy security strategies due to geopolitical tensions and rising energy costs. Nuclear energy continues to play an important role in Hungary’s electricity production, providing a large share of the country’s domestic power supply.

Supporters of the Paks expansion argue that the project is essential for long-term energy independence and stable electricity prices. Critics, however, have raised concerns about financial transparency, dependence on Russian technology and potential political influence.

Analysts believe the government’s decision could influence Hungary’s future relationship with both Moscow and Brussels, particularly as European nations continue debating energy diversification and strategic autonomy.