Hungary Initiates Talks with US on Nuclear Fuel Purchases Amid Diversification Drive

Hungary Seeks US Nuclear Fuel for Energy Security

Hungary has announced its intention to commence consultations with the United States regarding the purchase of American nuclear fuel. The announcement was made by Minister of Foreign Affairs and Trade Péter Szijjártó in Washington on Wednesday, October 22, 2025, ahead of meetings with US Deputy Secretary of Energy James Danly and the Vice President for Government Relations of Westinghouse. This strategic move is aimed at securing the country's expanding nuclear energy capacity, even as Hungary affirms its commitment to maintaining existing supplier relations with Russia.

Hungary's Nuclear Energy Landscape and Russian Ties

Nuclear power is a cornerstone of Hungary's energy strategy, with the Paks Nuclear Power Plant, located 100 km south of Budapest, providing a significant portion of the nation's electricity. The plant currently operates four VVER-440 reactors, which began commercial operation between 1982 and 1987. Historically, the fuel for these reactors has been supplied by TVEL, a subsidiary of Russia's state-owned nuclear energy corporation, Rosatom. Furthermore, Hungary is expanding its nuclear capacity with the Paks II project, which involves the construction of two new VVER-1200 reactors by Rosatom, largely financed by a €10 billion Russian loan.

Despite these deep-rooted ties, Hungary's decision to explore American fuel sources aligns with a broader strategy of diversification. The Hungarian government has repeatedly stated its intention not to abandon its Russian fuel supplier as long as deliveries remain stable. However, logistical challenges, particularly changes in delivery routes for Russian fuel since 2022 (now via the Black Sea, Bulgaria, and Romania), have underscored the need for alternative options.

Diversification Efforts and US Cooperation

The pursuit of American nuclear fuel is part of Hungary's wider efforts to enhance energy security and comply with European Union policies encouraging diversification. In October 2024, Hungary signed a long-term supply contract with France's Framatome to fuel the four existing Paks reactors starting from 2027, marking another step towards reducing sole reliance on Russian suppliers. The Hungarian Parliament also approved an amendment to its nuclear energy policy in November 2023, allowing for the use of alternative fuel sources for the Paks plant.

Discussions with the US are not limited to fuel purchases. Hungarian officials, including Minister Szijjártó, have also explored cooperation on advanced nuclear technologies, such as small modular reactors (SMRs). There have been agreements between Hungary's Hunatom and Poland's Synthos Green Energy to support the construction of up to ten BWRX-300 SMRs designed by US company GE Vernova. American companies like Westinghouse are also actively involved in programs aimed at developing secure fuel designs for VVER reactors, which could benefit Hungary.

Balancing Act for Future Energy Needs

Minister Szijjártó emphasized that diversifying fuel sources is crucial for the safe and stable operation of Hungary's increased nuclear capacity, ensuring a reliable energy supply and preserving the benefits of reduced utility costs. This approach reflects Hungary's delicate balancing act: securing its energy future through diversification while navigating its long-standing energy partnerships. The US government has encouraged Hungary to diversify its energy sources, viewing increased cooperation in the nuclear sector as a strategic step.