Hungary is examining whether Rosatom’s central role in the expansion of the Paks nuclear power station can be transferred to another supplier. The review comes as the government reassesses the project’s legal, technical, financial and timetable implications.
A direct award under review
The Paks expansion was awarded to Rosatom in 2014 by the government of then-prime minister Viktor Orbán without a competitive tender. The current review is considering whether the Russian company’s leading role, including that of general contractor, could be taken by another supplier, according to two sources cited by Reuters. One source said the assessment would examine the legal, technical, financial and timing consequences of changing contractor, as well as whether the project remains financially viable. No replacement company has been named, and the government has not made a final decision.
The project carries substantial exposure
The expansion originally had an estimated total cost of €12.5bn, while Hungary had paid more than €2bn by the first concrete pour in February. Rosatom says construction is continuing according to the schedule agreed with the customer and that major equipment for the future reactor units is being manufactured. The company says it has received no official notice of an intention to terminate the contract and sees no legally justified basis for doing so. The contract has already been amended five times; a sixth amendment has been prepared but not signed.
Climate, state aid and licensing add pressure
Uncertainty has increased after August drought forced the existing Paks reactors into an almost complete shutdown. A further setback came in 2025, when the Court of Justice of the European Union annulled the European Commission’s decision approving state aid for the expansion. The government nevertheless continues to support nuclear development. As an interim measure before the expansion is completed, Budapest is considering extending the operating licences of the four existing Russian-designed reactors by another 20 years. Their current licences expire between 2032 and 2037.
A European supplier would change the procurement context
The sources did not identify a company that could replace Rosatom. One said a European supplier would simplify the foreign-policy and sanctions context. If suppliers were restricted to Europe, the general-contractor role could be taken only by the French company EDF or one of its subsidiaries, according to the source. A decision against Rosatom could leave Hungary facing the loss of €1.1bn already paid to the company and possible contractual penalties. Rosatom has so far avoided EU sanctions, while Russia supplied about 23% of the EU’s enriched uranium and 16% of its natural uranium in 2025, according to the World Nuclear Association.
| Fact | Detail |
|---|---|
| Original award | Rosatom was awarded the project in 2014 without a competitive tender |
| Estimated cost | €12.5bn |
| Paid by first concrete pour | More than €2bn |
| Contract amendments | Five completed; a sixth prepared but unsigned |
| Potential amount at risk | €1.1bn paid to Rosatom |
| Existing reactor licences | Expire between 2032 and 2037 |
“The expansion of Paks is necessary”, but without Rosatom, a source close to the Hungarian government told Reuters.
WHY IT MATTERS
A contract awarded without a tender can still be revisited, but changing the general contractor on a complex nuclear project requires an assessment of legal rights, technical compatibility, financing, timing and possible termination costs. Paks shows how supplier choice can also affect sanctions exposure and the available competitive field.
Reported from seznamzpravy.cz, 2026-10-21. The Tender Wire is published by Otnox.
