Key supplier to Paks II was involved in corruption back home in Russia, guest workers face mass layoffs

The future of Paks II is in doubt as mass layoffs hit Orgenergostroy, a key subcontractor in Hungary’s nuclear project. Hundreds of workers, including guest workers from Russia, Kazakhstan, Türkiye, and Hungary, have reportedly lost their jobs. Despite Orgenergostroy’s long history in nuclear construction, including key global projects, reports suggest the company may be replaced.
Mass layoffs
Telex reports that the Paks II nuclear power project is facing uncertainties as Orgenergostroy, a key subcontractor, has reportedly begun mass redundancies. Independent MEP Ákos Hadházy recently highlighted that the Russian company has laid off hundreds of employees, including Russian, Kazakh, Turkish, and Hungarian workers. Established in 1955, Orgenergostroy has an extensive track record in nuclear construction, working on major projects across Europe and Asia. Despite its experience and long-standing ties with Rosatom, sources indicate that it may be replaced in the Paks II project, raising questions about the reasons behind its withdrawal.
Orgenergostroy’s role
While Orgenergostroy is not directly responsible for building the power plant itself, it has been involved in outsourcing units related to the project. Reports suggest that, although the company has met its deadlines, challenges at Paks II may have led to its removal. With a history of contributing to nuclear infrastructure worldwide, its departure could signal a shift in how Rosatom handles its subcontractors. This development adds to the broader concerns surrounding the project’s progress and future stability.
Corruption case
The recent mass layoffs at Paks II may be linked to a corruption scandal involving Rosatom and Orgenergostroy executives. In January 2025, Gennady Sakharov, Rosatom’s head of capital investment, and Elgudzhi Kokosadze, First Deputy CEO of Orgenergostroy, pleaded guilty to bribery charges. Sakharov was arrested in March 2024 for accepting a RUB 32.6 million (EUR 319,163) bribe, while Kokosadze, though not in custody, faces legal proceedings in Moscow. Both could face up to 15 years in prison. It remains unclear whether Orgenergostroy’s withdrawal is due to these legal troubles or other issues, such as concerns over work quality.
Despite this controversy, Paks II construction is reportedly continuing as planned. Rosatom confirmed that Orgenergostroy is responsible for staging area construction under its subcontract with Atomstrojexport. The number of workers required depends on the project’s phase, and current efforts are focused on preparing for the first concrete pouring of Unit 5’s baseplate. Once completed, Paks II will officially be recognised as a nuclear power plant under construction, marking a significant milestone in Hungary’s energy expansion.
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Let´s withhold judgment until our Politicians weigh in on all of this.
Personally, I cannot wait to hear Mr. Szijjártó´s interpretation.