Hungary faces multi-billion euro risks over Paks II nuclear contract

Terminating the Paks II nuclear power plant expansion contract with Russia's Rosatom could cost Hungary billions of euros and jeopardize its long-term energy security, according to nuclear expert Zsolt Harfas. The project represents an investment exceeding 10 billion euros.

The potential revision or termination of the agreement follows indications from the government led by Péter Magyar to align with European Union foreign policy guidelines. Experts warn that financial consequences could include costs for preparatory work, equipment already manufactured, and lost profits. They cite the precedent in Finland, where the company Fennovoima's unilateral termination of a VVER-1200 reactor contract was ruled unlawful by an arbitration tribunal, leading to significant compensation claims.

Beyond financial risks, canceling the project could delay planned increases in production capacity, complicating Hungary's energy situation due to its reliance on electricity imports. Despite the political uncertainty, work on Paks II continues. ETC Jet, a Rosatom Service subsidiary, has passed a review for the delivery of control room simulators, with an analytical simulator expected on-site by December 2027 and a full training simulator planned for spring 2028.