
Luxembourg – On Thursday, the Court of Justice of the European Union annulled the European Commission’s approval for Hungarian state aid allowing Russia to construct nuclear reactors, following a complaint from Austria.
The Court asserted that the Commission “should have verified whether the direct award of the contract (…) to a Russian company” complied with EU public procurement regulations.
In 2017, the Commission had authorized Hungarian state aid for the Russian firm Nizhny Novgorod Engineering, responsible for expanding the Paks nuclear power plant.
In exchange, Moscow committed to providing Budapest with a loan covering 80% of the costs for adding two reactors to the existing four.
Austria challenged the Commission’s decision, and the Court favored Austria’s position.
The ruling indicated that the decision was “not sufficiently reasoned,” as it failed to clarify the specific rationale behind Hungary’s direct contract award to Russia without a public tender. (September 11, 2025)













Leave a Reply