Are you sure?

Putin: Abandoning Paks deal would hurt Hungary

Russian President Vladimir Putin said today that it would hurt Hungary’s national interests if the country backed out of the deal to upgrade the country’s sole nuclear power plant at Paks, though he noted that the country could be forced to drop the deal by the European Commission, Russian news agency Tass reported.

Following talks with Sergey Kiriyenko, the head of Russia’s state-owned atomic energy company Rosatom, Putin warned that if Hungary cancelled or was forced to refuse the contract “it would have negative repercussions for the country”, International Business Times said.

“We offer good terms and advanced technology,” Putin said, according to Tass. “So, if the partner is forced to refuse [to cooperate], which certainly can be done, it would be damaging to Hungary’s national interests.”

Hungary reached a deal last year to have Rosatom upgrade the nuclear plant at Paks, which supplies most of the countryʼs electricity. The project is expected to cost €12.5 bln, and Hungary was granted a €10 bln line of credit from Russia to help pay for it.

The EC has been reviewing the deal, and could possibly raise objections that prevent it from happening.