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Paks Upgrade Unaffected by Russian Sanctions

admin 2014.09.18.

The upgrade of Hungary’s Paks nuclear power plant, financed and built by Russian companies, will not be affected by EU sanctions on Russia’s banking sector, stated Hungarian official on Wednesday. Vnesheconombank, which was named in a separate agreement on the financing, is among several Russian banks that the European Union has sanctioned over the crisis in Ukraine by restricting financing they can raise on EU markets.

“The current sanctions do not affect the construction of the Paks blocks,” Attila Aszódi told public television M1. “We are negotiating the details at present. The first disbursement would become a current issue next year,” he added. He said that even if the EU keeps the sanctions against the banks in place, they would still not affect the Paks upgrade Hungary signed an intergovernmental agreement with Russia on the construction of two blocks at the Paks nuclear power plant in January. Russia is providing EUR 10 billion (EUR 32 million) in credit for the investment.

The Russian-financed loan on the extension of the Paks Nuclear Power Plant passed the Parliament’s floor in June. The extension of Paks received heavy criticism from opposition party and green power advocate LMP as its members voted against the bill in June, while MSZP and Jobbik abstained.

via HungaryMatters, photo MVM Paks