These contracts concern the expansion of the Paks II nuclear power plant.
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This is a signal of a possible change in the current energy policy of Budapest, which is strongly linked to Moscow.
During a conference for foreign media on April 13, Magyar emphasized that his country remains dependent on Russian energy supplies and “geography cannot be changed.” At the same time, he emphasized that the expansion of the power plant is necessary to become independent from electricity imports in the future.
“I can say that we will analyze all contracts. We will negotiate if necessary, we will solve them if necessary and we will improve financial conditions if necessary“- announced the politician.
Hungary's key energy project
The power plant in Paks currently consists of four units based on the Russian VVER-440 technology. Plans to expand with another two reactors date back to 2009, and the contract with Rosatom was signed in 2014 by the government of Viktor Orban and the state-owned company MVM.
The Paks II project involves the construction of modern VVER-1200 generation III plus units, which are expected to operate for at least 60 years.. In 2022, the Russian company obtained consent to build new units, and the permit remains valid for a decade.
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Disputes with Brussels and financial problems
The investment was opposed by EU institutions from the beginning. Although the European Commission agreed to changes in the contracts in 2023, it did not accept the financing model in which Russia would cover the construction costs in exchange for influencing energy prices.
Additionally, in September 2025, the Court of Justice of the EU, at the request of Austria, revoked the consent to provide EUR 2.5 billion of public support for the project. In practice, this means serious complications for the financing of the investment, the value of which is estimated at approximately EUR 12 billion. Previously, covering the costs with a loan from Russia was considered.
For Rosatom, the Paks II project is of particular importance – it is one of the company's few projects in the European Union. Reactors of this generation are currently operating mainly in Russia and in Ostrowiec, Belarus, and others are being built, among others. in Turkey.
Although the investment was to be implemented on a turnkey basis, and the participation of local companies could reach up to several dozen percent, many details of the project remain unclear – including the list of foreign partners.
Uncertainty around the future of cooperation
Still at the end of 2025 the Fidesz government issued detailed permits to Rosatom and work began on expanding the power plant. However, the political change in Budapest may mean a revision of the current arrangements.
Experts point out that although the energy dialogue between Hungary and Russia may be continued, the limitation or even termination of cooperation on Paks II cannot be ruled out. Everything will depend on the results of the announced audit and the government's new strategy.
Decisions taken in the coming months may be important not only for Hungary's energy security, but also for the European Union's relations with Russia.
