POWER: Hungary’s Paks II Nuclear Project Can Proceed Despite EU Ruling

Hungary's EU Affairs Minister Janos Boka said on Thursday Hungary’s Paks II nuclear project can continue according to plan, after the EU’s Court of Justice ruled against the European Commission’s decision to approve state aid from Hungary for the project according to Reuters. 

• "As the court did not rule the system of state aid or the applied public procurement process as unlawful, therefore there are no legal obstacles that would prevent the Paks project continuing according to current plans," Boka said.
• On Thursday, the EU’s Court of Justice has ruled against the European Commission’s decision to approve state aid from Hungary for the planned 2.4GW Paks II nuclear power station according to Bloomberg.
• “[The Commission] should have ascertained whether the direct award of the contract for the construction of two new reactors to a Russian undertaking complies with EU public procurement rules”, the Court said.
• The Paks II project, backed by Russia’s Rosatom, has been facing major delays after U.S. sanctions on Gazprombank froze payments—triggering financial, political, and transparency issues, Foreign Minister Peter Szijjarto said in June.
• U.S. sanctions imposed in late 2024 on Russia’s Gazprombank—a key financial partner in the Paks II project—have effectively halted payments related to the expansion.
• However, despite financial and logistical hurdles, Rosatom has begun manufacturing key components, such as the reactor vessel, funded internally for now.
• The plant is expected to be operational in the 2030s.