The CJEU said the EC should have ascertained whether the award of the contract, without a public tender procedure, for the construction of two reactors at the Paks plant to a Russian company complied with EU public procurement rules.

The judgment was made after an appeal lodged by Austria. The EC had approved the Paks II investment aid in a decision on March 6, 2017.

The contract for the upgrade was awarded directly to Russia’s Nizhny Novgorod Engineering, and the state of Russia agreed to provide Hungary with a loan to finance most of the cost of the investment.

Austria contested the EC’s decision approving the aid before the General Court, but the action was dismissed. Austria then lodged an appeal with the CJEU.

The CJEU’s decision on Thursday sets aside the judgment of the General Court in addition to annulling the approval decision of the EC.