Hungarian Government to Review Rosatom’s Paks Nuclear Project

Hungary’s new government plans to review both the financing and contractual terms of the Paks 2 nuclear power plant project, which was awarded to Russia’s state-owned Rosatom without a tender in 2014. The announcement was made by Istvan Kapitany, nominee for economy and energy minister, after Prime Minister Peter Magyar’s government took office.

The project, which envisages the construction of two Russian-made VVER reactors, is valued at around €12.5bn ($13.5bn) and has long been one of Hungary’s most controversial investments. Construction has been repeatedly delayed, and critics have viewed it as a symbol of former Prime Minister Viktor Orban’s close ties to Moscow.

Speaking at a parliamentary hearing, Kapitany said Hungary needed a “transparent nuclear strategy” and that the government would examine both the project’s costs and the terms of its contracts. He added that these had so far been kept confidential and that the new administration had not yet been able to review them in detail.

Before the elections, Magyar had already argued that the project’s costs were overstated. Rosatom responded by saying it was ready to defend the pricing.

Despite the planned review, the government has not indicated any intention to abandon nuclear energy. Kapitany said it would remain a key part of Hungary’s energy mix.

(reuters, max)