EU Court Overturns Approval of Hungary Russia-Backed Nuclear Expansion

The European Court of Justice annulled the European Commission's 2017 approval of Hungarian state aid for the construction of two new nuclear reactors at the Paks nuclear power plant, built by Russia's Rosatom, ruling that the Commission failed to properly consider EU public procurement rules in awarding the contract without a public tender. Austria, which has opposed nuclear power, had challenged the deal, and while it initially lost at the General Court, the Court of Justice found merit in its appeal. Hungary's government, led by Prime Minister Viktor Orbán, stated it would continue the project as planned and is willing to cooperate with the Commission to demonstrate compliance with procurement and state aid rules. The Commission said it would study the judgment carefully to determine next steps. The ruling casts uncertainty over the decade-old project, which has faced delays but recently received preliminary safety approval from Hungary's nuclear regulator. This case highlights tensions within the EU over Russian involvement in critical infrastructure amid regulatory and geopolitical concerns.