EU probes Hungary's nuclear deal with Russia

• 9 years ago (2015-02-24)
• Junior Isles

Europe 1089 Nuclear 659

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The European Commission (EC) is investigating a nuclear deal between Hungary and Russia, the result of which may result in Hungary facing a veto or prohibitive fine.

Russia agreed to provide two new 1200 MW power generating units for the Paks power plant in central Hungary. Sergei Kirienko, head of Russia's nuclear agency Rosatom, said that the work was ahead of schedule and that a survey of the site would begin this spring.

However, despite initially allowing the project to go through in January 2014, the EC has two interconnected concerns about the project. The first is the legality of state subsidies and contracts rewarded to Rosatom without a call for bids and the second is Hungarian Prime Minister Viktor Orban's alleged decision to conceal certain details of the contracts due to 'national security'.

Additionally, Brussels is also trying to block another major Russian project, the South Stream gas pipeline, which was planned to deliver Russian gas to Europe via the Black Sea. In late 2014, Russia scrapped the project citing the EU's "non-constructive stance".

Paks is Hungary's sole nuclear power plant, and as of 2013 it generated more than 50 per cent of Hungary's national energy production.

The news comes at a time when EU relations with Russia remained strained due to the Ukrainian crisis.