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Siemens Energy ousted from Hungary's Paks II nuclear plant project

A sudden contract termination leaves Hungary's nuclear ambitions in flux. Why did Rosatom cut ties with Siemens Energy—and what's next for Paks II?

The image shows a diagram of a nuclear power plant with a tower on the right side and a building in...
The image shows a diagram of a nuclear power plant with a tower on the right side and a building in the background. The text on the image provides further details about the power plant, such as its components and how they interact with each other.

Munich. German energy giant Siemens Energy is no longer involved as a technology supplier in the construction of Hungary's Paks II nuclear power plant after Russian state nuclear corporation Rosatom, the project's general contractor, terminated the contract, both companies confirmed to Politico.

Siemens Energy ousted from Hungary's Paks II nuclear plant project

According to Rosatom, the agreement with Siemens Energy was canceled at the end of 2025 because the company had failed to meet its contractual obligations. The Russian state-owned firm stated that, as a reliable provider, it works exclusively with dependable partners—but did not specify which obligations Siemens Energy had allegedly neglected.

Originally, Siemens Energy was slated to supply the control electronics for two new reactor units at Paks II, covering the non-nuclear portion of the project. The relevant contracts had been signed in 2019 and 2020 alongside French nuclear group Framatome.

A Siemens Energy spokesperson clarified that "the termination of the contract for the delivery of the control technology system for the Paks II project was initiated by the customer. At the time of termination, there were no sanctions-related obstacles." The company added: "Siemens Energy fulfills its contractual duties in compliance with national and international legal requirements. By the time the delivery would have been possible, the customer had withdrawn its interest."

Rosatom, meanwhile, is already searching for a new supplier. The company stated that Siemens Energy's potential involvement had been limited to specific components of the control and regulation system, accounting for less than four percent of the project's total equipment scope—deemed non-critical.

"This equipment can be replaced by Russian or European alternatives, and Rosatom is already evaluating several substitute options," the Russian energy corporation said, without disclosing which companies are under consideration.

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