The European Union has blocked Hungary’s £8.6billion nuclear expansion deal with Russia, highlighting Prime Minister Viktor Orban’s challenge in maintaining close ties to the Kremlin while observing EU rules.
The European Commission, the EU’s executive arm, supports the European Atomic Energy Community’s refusal to approve Hungary’s plans to import nuclear fuel exclusively from Russia, sources say.
Mr Orban agreed the deal with Russia to expand the Paks nuclear plant during a meeting with President Vladimir Putin last year, scrapping plans for competitive bids for the biggest Hungarian public contract in a generation.
Hungary’s parliament last week classified information relating to the nuclear deal for 30 years, sparking an outcry from the opposition that the move is a cover for corruption.
The cabinet is in “intensive talks with the European Union” over the nuclear deal and is confident it will reach “an agreement that’s acceptable for the European Commission and also serves Hungary’s interests,” Janos Lazar, the minister in charge of the prime minister’s office, said on Friday. Mr Lazar said Euratom wants Hungary to diversify the supply chain for Paks.
Under the deal, Russia agreed to provide £7billion for the project in a 30-year loan at below-market rates.
The agreement has become a symbol of warming relations between Hungary and Russia at time when Mr Putin has grown increasingly isolated from the rest of the EU amid accusations that his country is providing support for pro- Russian separatists in Ukraine.
The nuclear deal is opposed by 60% of Hungarians, according to a poll commissioned by environmental campaign group Greenpeace.
Read more Europe news here.
Recommended for you
