Hungary is moving ahead with the expansion of its nuclear power plant in a new deal with Russia

Hungary has issued a major permit to expand its only Russian-led nuclear power plant, strengthening the country’s energy ties with Moscow even as European Union counterparts try to distance themselves from the invasion of Ukraine.

The National Atomic Energy Agency has issued an “installation permit” for the construction of a fifth and sixth nuclear reactor in the town of Pax, next to four existing units whose service life is coming to an end, according to a statement published on the authority’s website on Thursday, citing Bloomberg. Russia’s Rosatom is the main manufacturer.

“This license is a real turning point, a milestone that makes it possible for Hungary to have two new reactors by 2030,” Foreign Minister Péter Szijártó said in a Facebook post.

The decision contrasts with the position of Finland, which in May canceled a construction contract with Rosatom following Russia’s invasion of Ukraine.

In Hungary, Prime Minister Viktor Orban’s government has argued that nuclear power is a critical part of its energy mix, which is otherwise heavily dependent on Russian oil and gas.

“We are confident that the Paks II nuclear power plant will guarantee Hungary’s energy dominance for almost a century and bring European countries closer to achieving climate goals,” Rosatom CEO Alexey Likhachev said in a statement.

The European energy crisis and soaring prices are also boosting demand for nuclear power elsewhere, with Germany considering delaying the shutdown of its nuclear plants amid a squeeze on Russian gas supplies.

Hungary’s decision to grant Paks the installation permit, a key license before the new reactors are actually built, will strengthen already deep ties under Orban, who has been a reluctant supporter of EU sanctions and won an exemption from the context of the EU oil embargo against Russia.