Rosatom ‘pulling out’ of Hungarian nuclear project

By Mike Hayes29 March 2022

Rosatom has reportedly told the Russian government that it plans to withdraw from the Paks nuclear expansion project in Hungary.

The turbine hall of a reactor unit at Hungary’s Paks nuclear power plant. Photo: Reuters

The Russian state-owned nuclear energy company has a €12.5 billion contract to deliver two new reactors to the plant. It is reportedly citing force majeure as its grounds for withdrawing from the project, due to the sanctions placed on Russia, following the country’s invasion of Ukraine.

In 2014, the Russian government agreed to provide a €10 billion loan to finance 80% of the project’s costs, through the state-owned Vneshekonombank (VEB). In the current situation, it would not be possible for the loan to be directly paid to fund the already years-behind-schedule project.

According to Newsbase Daily News, however, Rosatom Central Europe’s Hungarian CEO Zalan Bacs has denied the report, insisting the implementation of the Paks project will continue according to schedule and Rosatom is fulfilling its contractual obligations under the Russian-Hungarian intergovernmental loan agreement, including securing the financing of the project.

Bacs said VEB will transfer the loans through Rosatom on Russian territory, to work around the sanctions.

The Hungarian government is keen to proceed with its plans to increase its nuclear energy supply, but analysts say Western companies would probably be reluctant to work with Rosatom on the project, if it were to proceed with the Russian company.

MAGAZINE
NEWSLETTER
Delivered directly to your inbox, Construction Europe Newsletter features the pick of the breaking news stories, product launches, show reports and more from KHL's world-class editorial team.
More News from Construction Europe
Obituary: Clément Fayat
With regret, we report the death of Clément Fayat, founder of the Fayat group
Sanctions hit Russian oil and gas project pipeline
GlobalData report shows construction projects decline by €72 billion in Q2, 2022 
CE Barometer for May
Mixed responses from Construction Europe survey speak to the current uncertainty
CONNECT WITH THE TEAM
Mike Hayes Editor, Construction Europe Tel: +44 (0)1892 786 231 E-mail: mike.hayes@khl.com
Simon Kelly Sales Manager Tel: +44 (0) 1892 786 223 E-mail: simon.kelly@khl.com
CONNECT WITH SOCIAL MEDIA