Russian state agency warns Hungary's incoming government against reviewing Paks nuclear deal

An article by the Russian state news agency RIA Novosti takes a critical tone on the Paks nuclear project and cautions Hungary’s incoming leadership against revisiting the agreement, 444.hu writes on April 21.

RIA ran the story under the headline “Rosatom on the brink of leaving Hungary”, but it does not cite any sources for its claims. Instead, it argues that incoming Prime Minister Peter Magyar's calls to review the Paks agreement are unfounded, claiming that Russia offered highly favourable terms for the project.

Although the headline suggests a rift between Hungary and Rosatom, the article states that the company is open to talks and ready to address cost concerns. In its review of the history of the expansion of the Paks nuclear power plant, the news agency dismisses claims that the project is the result of a political deal between Vladimir Putin and Viktor Orban, framing it instead as a decision rooted in economic considerations dating back to 2009, when Fidesz was still in opposition in Hungary.

Under a 2014 intergovernmental agreement, Rosatom was commissioned to build the plant for €12.5bn, financed by a €10bn Russian state loan. The new blocks, each with a capacity of 1,200 MW, would eventually replace the four existing reactors built in the 1980s using Russian technology.

The commissioning of two VVER-1200 reactors would raise Hungary’s share of domestically generated electricity to 70% by 2030, up from the current 40%.

By that time, Hungary would not only become one of the countries with the greenest energy mix, but also reduce its dependence on oil and gas imports, thereby gaining “immunity from Ukrainian and European resource blackmail”, the article adds.

The Hungarian project was Rosatom’s first in an EU country and was intended to serve as a reference project for the company. Hungary continued with Rosatom despite sanctions imposed on Moscow after its full-scale invasion of Ukraine.

By then, the project had already suffered years of delay due to the company’s failure to secure the necessary permits. According to the original timeline, Rosatom was to complete the new blocks by 2025-2026. The first concrete was poured earlier this year, as the Orban government sought to accelerate the project ahead of the April 2026 election. Under the revised schedule, the two new blocks could be operational in the early 2030s.

The article reflects on comments made by incoming Prime Minister Peter Magyar, who said at his first international press conference that the new government would fully review the project.

Tisza will reassess the financing of Paks and examine how the investment's cost has doubled over the past 10 years, according to the party’s election manifesto.

It adds that construction is progressing slowly and is burdened with numerous problems. Under current conditions, there is no realistic chance of completing it successfully on schedule and within budget, according to the party’s programme.

Citing industry experts, RIA writes that the project’s cost has increased to €14.7bn, but it remains an unusually low offer by global nuclear construction standards.

The article further claims that Western nuclear industries have declined due to financing difficulties and loss of expertise, while Russia’s state-backed model enables more cost-efficient construction, including at Paks 2.

According to the financial agreement, the interest rate on the construction loan is floating and ranges from 3.95% to 4.95% per annum, depending on economic conditions.

"Magyar’s statement that the cost of the Paks 2 project is grossly inflated should be viewed as self-promotion and informational noise," RIA said.

The piece also argues that Hungary’s energy structure makes continued reliance on Russian nuclear fuel and on economic cooperation with Russia economically necessary. It cites Peter Magyar’s comments that Hungary will need to continue importing Russian fossil fuels. Magyar has called for diversification of supply sources but said that “you cannot change geography”, implying that the new government would also rely on Russian fossil fuels. The government is therefore likely to clash with the EU, which has set a 2027 deadline for phasing out all imports of Russian gas, oil and processed products.

The article concludes that criticism of the project’s cost is largely political messaging, adding that Hungary’s economic constraints will ultimately limit its options.

"If Peter Magyar nevertheless decides that the Russian offer is too expensive, he can explore the market, ask around, and look for something cheaper. And in four years, pack his bags and ride off into the sunset of history," RIA added.

On April 15, Rosatom CEO Alexey Likhachev said that the company was prepared to defend the effectiveness of the Paks 2 project, the validity of its price and other parameters. He highlighted the benefits to the Hungarian people of the project, which would boost the share of nuclear power in Hungary's electricity mix to over 70% and pave the way for electricity exports.

In his first interview after the defeat of Fidesz, outgoing Prime Minister Viktor Orban said, when asked, that he considers Paks 2 to be his party’s biggest failure.

"If the project had been completed earlier, the Hungarian economy would be in a far stronger position, with more and cheaper energy available," he said.

Former government commissioner of Paks 2, Attila Aszodi told broadcaster ATV that Orban's comments reflected disappointment and constituted implicit criticism, indirectly blaming Moscow for delays despite what he called Rosatom's significant efforts.