# Hungary is considering replacing Rosatom on the Paks nuclear plant expansion

- URL: https://syn.by/en/politics/international-relations/hungary-is-considering-replacing-rosatom-on-the-paks-nuclear-plant-expansion/
- Published: 2026-10-22T14:30:05+00:00
- Updated: 2026-10-27T11:50:04+00:00
- Section: International Relations
- Language: en
- RU edition: https://syn.by/ru/politika/mezhdunarodnye-otnosheniya/vyengriya-rassmatrivayet-vozmozhnost-zamyenit-rosatom-na-rasshiryenii-aes-paksh.md
- BE edition: https://syn.by/palityka/mizhnarodnyya-adnosiny/vienhryja-razhliadaje-mahchymasc-zamianic-rasatam-na-pashyrenni-aes-paksh.md

> Peter Magyar's government reportedly wants to complete its review of the project by the end of 2026 or the start of 2027. Rosatom has already received about 1.1 billion euros.

![Péter Márki-Zay, Viktor Orbán and Péter Medgyessy — Hungary is considering replacing Rosatom on the Paks nuclear plant expansion](https://syn.by/wp-content/uploads/2026/10/illustration-991-1024x585.webp)

The Hungarian government is considering replacing Russia's Rosatom as general contractor for the expansion of the Paks nuclear power plant and has begun studying offers from alternative suppliers. Several outlets reported this on 21 October.

According to the Ukrainian outlet epravda.com.ua, Budapest is studying alternatives for the plant's expansion project. Other Ukrainian outlets write that Prime Minister Peter Magyar's cabinet is assessing alternative options and the consequences of a possible decision.

Rosatom received the contract in 2014 without a tender, the same sources report. The initial cost of the project is given as 12.5 billion euros.

Magyar's government intends to complete its review of the project by the end of 2026 or the start of 2027, according to non-state Belarusian outlets. By the same reports, the final decision could be made within the same timeframe.

A source close to the Hungarian administration told [Reuters](https://www.reuters.com/business/energy/hungary-considers-replacing-russias-rosatom-nuclear-project-2026-10-21/) that the government is leaning toward the conclusion that the plant's expansion is necessary but that Rosatom should not take part in the project. These are the words of an anonymous source, not the cabinet's official position.

It is not yet known which alternative suppliers are being considered or on what terms.

The main question for Budapest is money. According to Telegram channels, Hungary risks losing the 1.1 billion euros already paid to Rosatom and may face penalties for breaching the contract. Non-state Belarusian outlets write the same: if Russian contractors are dropped, these funds may be lost, and terminating the contract may also mean paying a penalty.

By February 2026, Hungary's spending on the project had exceeded 2 billion euros, of which about 1.1 billion went to Rosatom. The Ukrainian outlet delo.ua specifies that this mark was passed by the time the first concrete was poured.

Rosatom does not agree with this turn of events. The company told Reuters that construction is proceeding on the agreed schedule and that equipment for the future power units is being manufactured. In its words: "We have not received any official notice from the customer of an intention to terminate the contract, and we see no legally justified reasons for such a step." The company has a direct interest in keeping the contract: it has already received about 1.1 billion euros under it.

The contract was concluded under Viktor Orban without a tender in 2014. The project's cost was then set at 12.5 billion euros. The terms have been amended five times; a sixth amendment was prepared but not signed.

According to an analytical briefing, terminating the agreement would have to be done not under international law but under national legislation and the terms of the agreement itself. Hungarian state contracts are governed, among other things, by Decree No. 143. Its paragraph 13 of part two allows termination if the supplier refuses to perform; with a formal basis, this could make it possible to end the contract without penalties. Another possible ground is legal impossibility of performance because of the sanctions regime.

Putting these circumstances together, the picture is this. The contract was concluded without competition, its terms were amended five times, and the way out is determined by national law and the text of the agreement. Rosatom, for its part, maintains that there are no grounds for termination. The outcome of the dispute depends on whether Budapest finds a formal basis that removes the risk of penalties.

Choosing a European contractor, according to an assessment cited by non-state Belarusian outlets, could simplify political questions and reduce the project's dependence on Russia. But changing contractors may bring additional costs, legal disputes and delays.

The Hungarian authorities are also assessing the financial viability of the project itself. In addition, they are considering a 20-year extension of the licences of Paks's four existing reactors.

For Belarus, Rosatom is the same partner with which Minsk is discussing the development of its own nuclear power. In February 2024, Rosatom director general Aleksei Likhachev told State Duma deputies that the question of building a new power unit at the Belarusian nuclear power plant was being worked out. In May 2024, Belarusian Prime Minister Raman Halouchanka, at a meeting with Likhachev, said he intended to expand cooperation with the state corporation.