During an interview on state-owned all-news channel M1 late yesterday, Aszódi reportedly said that Russiaʼs finance ministry issued a statement yesterday, saying that funding for the project had already been set aside in 2014.
Aszódi noted that the Russian general contractor for the project would choose the sub-contractors, adding that the sides had agreed that 40% would comprise companies already active in Hungary, MTI reported.
“The budget is strained, more than strained. I think we are in a situation where we are forced to take a break from issuing new loans,” Deputy Finance Minister Sergei Storchak was quoted by Russian news agency Interfax as saying on Monday.
This statement, coupled with the recent announcement that Hungary’s Prime Minister Viktor Orbán has been invited to meet Russia’s President Vladimir Putin in Moscow next month, and the news that American firm GE was asked yesterday if it could be involved in the project, led some to suggest that the current plan may be in jeopardy.
Under a deal announced about two years ago, while Orbán was in Moscow, Russian nuclear firm Rosatom was to build two new reactors at the Paks plant for €12.5 billion, with €10 billion in financing provided by the Russian state. That deal was awarded without a competitive bidding process.
The deal with Rosatom is currently being investigated by the European Commission due to questions about its competitiveness. EC officials have said that, since it might not be profitable from a market standpoint, the Paks deal could amount to state aid. Hungarian officials have denied this charge.
Producing journalism that is worthy of the name is a costly business. For over 30 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
