According to President Putin, Russia places much importance on the Paks expansion project. “As you know, the Paks nuclear station has long been operating in Hungary and today accounts for almost 40% of power generation in the country. Additional capacity will double the power output and satisfy the demand for power needed to put in operation new production facilities in Hungary,” Russian President said. In his turn, Viktor Orbán stated that the construction of new reactors at Paks would start in 2018.
Expert Comments
“Cooperation between Rosatom and Hungary spans several decades. This makes the Paks expansion project advantageous for the both parties. Hungary is a net importer of electric power, with nearly 50% of total power consumed in the country being supplied from abroad. This is the reason why a twofold increase in nuclear power output will considerably reduce Hungary’s dependence on power imports and – if the commodity market situation is favorable – stabilize electric power prices. Financing issues are likely to be settled in the short term. Unless any obstacles are put by third parties (particularly the EU), the construction will begin as scheduled,” says Vasily Kopsov, Head of the Financial Markets Department at KIT Finance.
Hungary’s Prime Minister Viktor Orbán says, “We are looking forward to the start of the project. Much has been said about this nuclear station, but no one has seen it yet. No hole has yet been dug on the construction site. We are not planning to revise the agreement. Every provision agreed between Hungary and Russia must be fulfilled.”
Vladimir Putin stated that Russia was ready to finance the 12 billion euro expansion project in full provided that the relevant agreement was amended accordingly. The current agreement provides for 80% of the project costs (12 billion euros) to be financed with a Russian loan. “We have informed Mr. Orbán of other options available. Russia is prepared to finance 100% of the project if provisions of the initial agreement are amended slightly,” said Vladimir Putin at a press conference after the talks with Hungarian Prime Minister Viktor Orbán.
