MOSCOW, September 11. /TASS/. Rosatom is proceeding with the implementation of the Paks-2 Nuclear Power Plant project, the state corporation said in a statement.
"Rosatom, together with its Hungarian partners, continues to carry out the Paks-2 Nuclear Power Plant project. The project is vital for Hungary’s economy, as the commissioning of the plant will provide the country with a stable source of affordable electricity. For Rosatom, the top priority remains executing the project in full compliance with the highest international safety standards and strictly in line with contractual obligations," the statement read.
On Thursday, the EU Court of Justice ruled that Hungary’s state subsidies for the expansion of its Paks nuclear power plant were incompatible with EU regulations, overturning the decision of the General Court and annulling the European Commission’s approval of Hungary’s state aid for the construction of two new nuclear reactors.
The court explained that before issuing its decision approving the aid, the European Commission was required not only to verify whether the initiative complied with the EU state aid regulation, but also to ensure that "he conclusion of the contract for the construction of two new reactors was in accordance with the EU public procurement regulation.
On Paks NPP and US sanctions
Earlier, in the second half of November 2024, the United States imposed sanctions on Gazprombank, which handled payments between Hungary and Russia for oil and gas supplies, as well as for the construction of the second phase of the Paks NPP. Moscow and Budapest were forced to seek alternative payment methods. Additionally, on January 10, the United States announced a broad package of sanctions targeting the Russian oil and gas sector, as well as the management of Rosatom, including the state corporation’s CEO, Alexey Likhachev.
While solutions were found regarding oil and gas payments, financing for the construction of the Paks plant remained unresolved. As a result, the construction of the two new units at Paks has been idle in recent months. Hungary requested that the administration of US President Donald Trump lift sanctions on Gazprombank, which serves as the guarantor of financing for the Paks-2 project.
The Paks plant, built by Soviet specialists in the 1980s, accounts for half of all electricity generated and one-third of the electricity consumed in Hungary. Located on the banks of the Danube, 100 km south of Budapest, the plant operates four units with VVER-440 reactors.
Simultaneously, construction is underway for its second phase - Units 5 and 6 under the Paks-2 project, developed by Rosatom. Moscow has confirmed its readiness to finance this project, estimated at 12.5 bln euro, which was originally planned to be funded 80% through a Russian loan. According to projections, following the commissioning of the two new VVER-1200 nuclear reactors in the early 2030s, the generating capacity of the Paks nuclear complex will increase from the current 2,000 MW to 4,400 MW. The share of electricity generated by nuclear power plants is expected to reach 70% of the country’s energy balance.