Rosatom is a Russian state holding company that brings together 450 enterprises and employs 360,000. people. These companies range from the production of nuclear weapons, through research organizations and nuclear icebreaker fleets, to the management and construction of nuclear power plants. If a nuclear power plant was built east of the Bug, e.g. in Belarus, it was usually with the participation of Rosatom.
However, Rosatom's services are used not only in the East to build power plants. Rosatom is expanding the power plant in Hungary (Paks II), where the first electricity is to flow in 2032, in Turkey (four VVER-1200 units), where the first electricity is to be supplied already in 2026, and in Bangladesh, Iran and Uzbekistan.
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Rosatom announced on Tuesday regarding investments in Hungary to release Siemens Energy from its obligations under the contract on assistance in the expansion of the Paks nuclear power plant. The company, quoted by Reuters, added that it is already considering alternatives to the German company's equipment.
Expansion of the Paks nuclear power plant
At the beginning of February, the expansion of the nuclear power plant in Paks, located in central Hungary, began. Rosatom is responsible for building two new units with a capacity of 1,200 MW each. The project called Paks II is one of the key energy projects of Viktor Orban's government.
The value of the entire investment is expected to be: approximately EUR 12 billion. The project is to be fully financed by the Hungarian state borrowed funds from Russia for this purpose.
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Siemens Energy was to provide and implement measurement and control (I&C) technology, known as “nervous system” of the power plant.
Problems regarding the company's involvement in the project result from: the German government's refusal to grant an export license to Siemens Energy in 2023. The authorities in Berlin then referred to Russia's invasion of Ukraine.
French instead of Germans
In an attempt to circumvent the restrictions, Hungarian Foreign Minister Peter Szijjarto announced in June last year that Siemens Energy would open a branch in Hungary, thanks to which it would be able to supply parts to the power plant despite the lack of consent from the German government.
However, Szijjarto met with the management last Thursday the French company Framatomewhich – according to the statement of the Hungarian Ministry of Diplomacy – “will provide one of the most important elements of the expansion of the Paks power plant, i.e. the control system,” the Telex portal reported.
Siemens Energy was in big trouble a few years ago when it reported a loss of EUR 4.5 billion in 2023. Later, however, the company made profits and last year it earned EUR 1.4 billion net.
During the commencement of work, Szijjarto recalled that when the expansion of the power plant is completed, “nuclear energy will cover 70 percent. Hungarian electricity demand“.
