Hungary, Russia Agree to Modify Paks II Contract

Deals

Hungary and Russia have reached an agreement on modifications to the contract on the expansion of the Paks nuclear power plant, Minister of Foreign Affairs and Trade Péter Szijjártó said after talks with Rosatom CEO Alexey Likhachev in Moscow on Tuesday, according to a report by state news wire MTI.

Advancing the project to add two more blocks at the Paks plant is "not made any easier" by the war in Ukraine and sanctions against Russia, while technical, technological, and other circumstances have also changed to a degree requiring modifications to the contractual framework in the interest of finally allowing the implementation of the investment, Szijjártó said.

"We're moving forward with the project, but the financing and construction contract needed to be clarified to guarantee the investment can be carried out in this changed environment," he added.

He noted that the original contract was signed more than nine years earlier.

He said the lawyers are making the final changes to the text of the contract, after which time the modifications can be submitted to the European Commission for clearance.

"We hope that the European Commission does not wish to jeopardize the long-term security of Hungary's energy supply...which can be guaranteed by the construction of the new blocks at Paks," he added.

Rosatom is the general contractor for the construction of the two new blocks at the Paks plant which accounts for about half of the domestic electricity generation.

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