Hungary re-evaluates €10 billion nuclear deal with Rosatom

The Hungarian government is re-evaluating a €10 billion nuclear energy agreement with the Russian state corporation Rosatom. The project, a cornerstone of former Prime Minister Viktor Orbán’s strategy to maintain energy and diplomatic ties with Moscow, is facing scrutiny from Prime Minister Péter Magyar.

An environmental crisis has accelerated the need for review. Severe drought and intense heatwaves have caused the Danube River to reach historically low levels, severely impacting electricity production. At the Paks nuclear power plant, which typically provides one-third of Hungary’s electricity, production has plummeted to approximately 10 percent. Magyar warned that a total shutdown of the plant could force the country to spend at least €544 million on emergency electricity imports.

Magyar has also criticized the technical design of the planned expansion, arguing that modern global standards favor plants with closed cooling systems rather than those overly dependent on environmental conditions. While Rosatom CEO Alexei Likhachev maintains that work on Unit 5 is largely complete and on schedule, Magyar has contested these claims, noting that the expansion was expected to be operational in 2024.