EU Court Cancels Authorization for Russian-built Nuclear Power Plant in Hungary Over Legal Issues
The European Court of Justice, a key institution of the European Union, recently made a significant ruling regarding the construction of a new nuclear power plant in Hungary.
It annulled the previously approved authorization by the European Commission that allowed the Russian company ‘Rosatom’ to proceed with the project.
The decision stemmed from procedural and legal concerns raised during the agreement process between Hungarian Prime Minister Viktor Orbán’s government and Russian contractors, which was conducted without public tender procedures.
According to the Luxembourg-based judges, European procurement rules should have been explicitly followed when signing such a substantial contract.
They emphasized that the European Commission should have scrutinized the compliance with public procurement rules more diligently, rather than rubber-stamping the deal.
The Hungarian government plans to seek judicial review to determine future steps, asserting that the existing legal grounds still support ongoing investments in the ‘Paks’ project.
The project involves the construction of two additional reactors, each with a capacity of 1 gigawatt, based on Russian technologies, with several international companies from France and Germany involved as subcontractors.
Critics express concerns about compliance with EU standards and the long-term safety of the nuclear development.
Hungarian EU Affairs Minister János Bóka stated that there are currently no legal grounds to halt investments and underscores the importance of further developing the project for national energy security.
Meanwhile, the European Commission said it will carefully review the court’s decision and determine subsequent actions within its policy framework.
Hungary maintains that cooperation with Russia remains crucial for its energy independence, especially amid ongoing sanctions.
Analysts note that balancing political interests with legal obligations remains a challenge within the European legal landscape.