EU blocks $10.6-billion Russia-Hungary nuclear deal

The European Union (EU) has reportedly opposed a nuclear deal between Budapest and Moscow for the expansion of Hungary’s sole nuclear power plant.

According to a report by British newspaper The Financial Times on Thursday, the EU voiced its opposition to the nuclear agreement under which Russia would add two reactors to Hungary’s four-reactor nuclear plant in the central town of Paks and also provide fuel rods for the new sites.

The report also said the deal, which was signed last year, had been vetoed by the European regulator Euratom during a private meeting in Brussels, the EU’s de facto capital, last week. The blockage was later approved by the European Commission.

The reason behind the EU’s decision has not been announced, but a Hungarian member of the European Parliament hinted that the terms of the contract are the source of the bloc’s objection.

“If the Russians now refuse to modify the original contracts, this will be the end of the road for the project,” Jávor Benedek (shown above) told the British newspaper, adding, “The report is very clear that the fuel supply agreement does not comply with European law.”

According to the contract, Russia would grant Hungary a USD 10.6 billion loan on condition that the latter would spend the fund on buying Russian equipment.

This is while the communication state secretary for the Hungarian premier’s office “firmly denied” the blockage report.

“It is not true that the EU has blocked the Paks II construction,” Andras-Giro-Szasz stated.

Moscow-Budapest ties

In February, Russian President Vladimir Putin made a single-day visit to Hungary, his first to an EU state since the start of the Ukrainian crisis in 2014.

After the meeting with Putin, the Hungarian prime minister decried the EU’s sanctions against Russia over Moscow’s alleged role in the Ukrainian conflict, saying the bans would have a detrimental influence on the bloc’s economy.

“One who believes the European economy will be competitive without cooperation with Russia and one who thinks energy security can be guaranteed in Europe without energy supplies from Russia is cherishing illusions,” Viktor Orban said.

“I am certain that relations between the European Union and Russia need to be reestablished as soon as possible,” he added.

EU-Moscow frayed relations

Russia has been hit with a series of sanctions by the EU and the US, which accuse Moscow of supporting pro-Russia forces in eastern Ukraine. Russia categorically denies the allegation.

Donetsk and Lugansk are two mainly Russian-speaking regions in eastern Ukraine, which were hit by deadly clashes between pro-Russia forces and the Ukrainian army after Kiev launched military operations in April last year to crush pro-Russia protests there.

In May 2014, the situation in the two flashpoint regions started to worsen as residents overwhelmingly voted for independence from Ukraine in a referendum.

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