Hungary is considering replacing Russia's Rosatom as the main contractor in the expansion of its Paks nuclear power plant and has started sounding out alternative suppliers as part of a review of the project, two people familiar with the matter told Reuters on Wednesday.

The project, awarded by former prime minister Viktor Orban to Rosatom without a tender in 2014, was originally estimated to cost €12.5 billion — yaani, about 1,250 crore euros — and had cost Hungary more than €2 billion ($2.24 billion) by the time the first concrete was poured in February, Reuters reported. The expansion is Rosatom's most prominent nuclear project in the European Union, after Finland cancelled its contract with the Russian firm in May 2022.

The cabinet of Prime Minister Peter Magyar, who won a landslide election victory in April, is expected to make a final decision about the Paks expansion later this year or early next year, Reuters reported. A person familiar with the review said all scenarios were on the table when asked whether it could lead to Hungary changing its main contractor. A Hungarian government spokeswoman did not immediately respond to a Reuters request for comment.

Rosatom said it continued to implement the project in line with the schedule agreed with the customer and that production of the main equipment for the future power units was under way. "We have received no formal notification from the customer of any intention to terminate the contract, nor do we see any legally justified grounds for such a decision," a company spokesperson said in an emailed response to Reuters.

Under Orban, Hungary opposed any sanctions on Russian nuclear energy, Reuters reported. The review also follows uncertainty at the existing plant, where a drought in August led to a near shutdown of its existing reactors, according to Reuters. Wedoany's report on the review added that the original agreement included Russian state financing of up to €10 billion — yaani, about 1,000 crore euros — and that Hungary has already paid about €1.1 billion to Rosatom.