“There has been much in the news lately that the European Community has investigated this project. It should be made clear that the Hungarian Government stays in close contact with the European Community. We are sure that the project can be implemented without government funding. We will be able to sell electric power and can do it without government support,” he said. Attila Aszódi noted that Hungary had the right to sign intergovernmental agreements, and they had been submitted to the European Commission prior to their signing.

Hungary is open for talks with the European Union, Aszódi said. According to him, the Paks expansion project will need no government funding despite the European Commission expressing concerns about its compliance with EU public procurement procedures.

Aszódi also spoke about the involvement of Hungarian companies in the project. According to Rosatom’s First Deputy CEO Kirill Komarov, Hungarian providers have been already engaged at the project’s preparatory phase. Core equipment of the reactor island, he said, will be produced in Russia in line with Russian technologies while other equipment and construction services will be tendered out to third-party suppliers. Hungarian companies are also welcome to make their bids.

Rosatom is not a party to the talks with the European Commission, Komarov said. “These talks are held by our Hungarian colleagues. Meeting all the contractual obligations is what we do. And I want to make a point that everything related to the project is open and transparent,” he added.

According to reports, the European Commission initiated in November an investigation into the Hungarian Government’s plans to provide funding for the construction of two new reactors at Paks-2. The Commission is going to ascertain whether the project is based on market terms or constitutes state aid and whether it restricts competition.

In December 2014, Rosatom signed a contract for the expansion of Paks nuclear power plant in Hungary. Total investments will not exceed 12.5 billion Euros. Prior to the contract, in March 2014, Russia and Hungary signed a USD 10 bn loan agreement for the Paks expansion. In 2009, the Hungarian Government approved the project to construct two new reactors at the country’s only nuclear station.