Sanctions Against Russia Could End Paks Project in Hungary

  • 30 Mar 2022 6:14 AM
  • Hungary Around the Clock
Sanctions Against Russia Could End Paks Project in Hungary
Rosatom has sent a letter to the Russian government indicating the company’s intention to withdraw from the expansion of Hungary’s nuclear power plant in Paks on the grounds of force majeure, according to Russian sources quoting Alexey Likhachev, CEO of the Russian nuclear power company.

Russia is no longer pushing the investment, which could be hampered by sanctions in the wake of the Russia-Ukraine war, according to the report.

Minister without portfolio in charge of the expansion project, János Süli, did not respond to requests for comment.

Rosatom Central Europe CEO Zalán Bács denied the report. The implementation of the Paks 2 project will continue according to schedule and Rosatom will fulfil its contractual obligations in full under the Russian-Hungarian agreement, including securing the financing of the project, he said.

Hungary took out a €10 billion loan from Russia’s Vneshekonombank (VEB), but due to sanctions the bank cannot make direct transfers to state development bank MFB.

To circumvent this, VEB will transfer funds through Rosatom on Russian territory, Bács said.

Rosatom has not yet started construction of the Paks project, as authorities have yet to issue a final permit.

MTI Photo: Tamás Kovács

  • How does this content make you feel?

XpatLoop Media Partner

Hungary Around the Clock

Since 1995 Hungary Around the Clock has proven to be one of the most comprehensive sources of daily English-language news about Hungary. It covers ongoing domestic politics and foreign relations, as well as business and economic matters. For a free trial of HATC visit and click on 'Free Trial Subscription’.

Explore More Reports

  • Paks Nuclear Plant Upgrade to Continue

    Paks Nuclear Plant Upgrade to Continue

    • 7 Apr 2022 7:00 AM

    Concerning the upgrade of Hungary’s Paks nuclear plant, PM Orbán said that Hungary had a general objection against European sanctions against Russia, but “since unity within the EU is important, Hungary approves such measures unless they do not impact vital Hungarian interests”.

  • Hungary Reaffirms it Will Not Forward Weapons or Troops to Ukraine

    Hungary Reaffirms it Will Not Forward Weapons or Troops to Ukraine

    • 10 Mar 2022 11:55 AM

    Prime Minister Viktor Orbán made clear in London that Hungary will not send troops or weapons to Ukraine, nor will it allow transports of weapons to cross its territory “directly to the state attacked by Russia”, Foreign Minister Péter Szijjártó said late on Tuesday after attending talks alongside Orbán with Visegrad leaders and Prime Minister Boris Johnson.