Russia has officially started the construction of two new power units at the Paks-2 nuclear power plant in Hungary. The project is being implemented by the state corporation “Rosatom” in accordance with an agreement signed between Hungary and the Russian Federation back in 2014. The new power units will feature VVER-type reactors, each with a capacity of 1.2 gigawatts.
This is reported by Finway
Strategic Importance for Hungary’s Energy Sector
The Hungarian Minister of Foreign Affairs, Peter Szijjarto, and the company “Rosatom” confirmed the commencement of construction work. According to Szijjarto, the launch of Paks-2 will allow Hungary to meet up to 70% of its electricity needs through nuclear energy, significantly reducing the country’s dependence on global energy markets.
“The construction of Paks-2 means that we will be able to cover 70% of Hungary’s electricity needs through nuclear energy, which will significantly lower our dependence on international markets,” Szijjarto stated.
The completion of the two power units is planned for 2030–2031, although the project has already faced significant delays. The construction cost is estimated at 12.5 billion euros. The contract for the implementation of this large-scale project was awarded to “Rosatom” without a tender, which is often seen as evidence of close ties between Prime Minister Viktor Orban and Russian President Vladimir Putin.
Sanctions and Legal Aspects of the Project
Despite the sanctions imposed by the United States against the Russian energy sector, they do not apply to work related to the construction of this nuclear power plant. In November 2025, the United States made an exception allowing financial transactions to be conducted for the implementation of the Paks-2 project.
The existing Paks nuclear power plant was built between 1982 and 1987 based on a Soviet design and consists of four VVER-440 reactors with a total capacity of approximately 2 gigawatts. It is planned that these units will gradually be decommissioned from 2032 to 2037; however, the Hungarian government expresses its intention to extend their operational life.
The history of the Paks-2 project has been complicated by legal disputes. In September of last year, the European Union Court annulled a decision by the European Commission that approved state aid from the Hungarian government for the project involving “Rosatom”. Overall, Russia is expected to finance 10 billion euros in the form of a loan, while the Hungarian government is to provide an additional 2.5 billion euros. This portion of the funding was approved by the European Commission in 2017, but the decision was later challenged by Austria and ultimately annulled by the highest court in the EU after appeals.