January 14th, 2014

Hungary, Russia sign agreement on nuclear power plant expansion

Representatives of Hungary and Russia signed in Moscow on Tuesday an inter-state agreement on cooperation with Russian involvement in the peaceful utilisation of nuclear power and in the construction of new blocks at Hungary’s sole nuclear plant.

The agreement was signed in the presence of Hungary’s Prime Minister Viktor Orban and Russian President Vladimir Putin by Hungarian Development Minister Zsuzsanna Nemeth and head of Russia’s Rosatom Sergey Kiriyenko.

After the signing ceremony, Putin said that adding new blocks to the Paks power plant, which currently accounts for 40 percent of Hungary’s electricity output, would increase the country’s independence of energy supplies.

Orban praised the agreement, calling it an “excellent professional deal”.

Two of the four blocks of Paks nuclear power station are set to expire in 2037.

Kiriyenko said that Russia would provide Hungary with a loan to finance construction of the two new blocks, but added that the amount had not been defined. He said that it would be below the 10-12 billion euros set for the project.

Kiriyenko said that the exact amount would be calculated on basis of current prices and the power plant’s technical parameters. He noted that the preliminary agreement on the Paks upgrade covered three areas: construction of the new blocks, fuel supplies, and servicing.

Putin said the two new blocks would double the plant’s current output of 2 gigawatts. He called the agreement “unique”, adding that over 40 percent of the project would be completed by the Hungarian party.

“The Hungarian side will spend some 3 billion dollars on preserving jobs,” the Russian president said, noting that the Hungarian central budget would collect over one billion dollars in taxes thanks to the deal.

Meanwhile in Budapest, Janos Lazar, head of the Prime Minister’s Office, said that the Russian loan would be provided for a 30-year term, and the first new block would be commissioned in 2023.

He added that Hungary’s energy independence would further increase with the blocks.

The plan for the new blocks have been sent to Brussels, which has not raised any objections, Lazar said, adding that the investment would increase Hungary’s economic output by 1 percent and create ten thousand jobs.

As for the financing, Russia will provide support for 80 percent of the total costs in the form of a loan while Hungary will foot the remaining 20 percent.

Opposition party LMP has called on the government to publish the details of the agreement signed in Moscow.

Bernadett Szel, the party’s co-leader, told MTI that it appeared there was a danger that “Viktor Orban has in effect sold Hungary to the Russians”. She said it was as yet unclear what exactly had been signed in Moscow, and so LMP would do everything within its power to bring the entire text of the agreement out into the open. She said that in a normal country there would be a social and political debate on the issue, but this had failed to happen in Hungary.

LMP has launched a petition on Facebook and is organising a demonstration, she said.

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  • szebbjovot

    “LMP would do everything within its power”
    “LMP has launched a petition on Facebook and is organising a demonstration, she said”


  • Jameson

    How the flying Fuck can they do that without putting it up and asking the public in an election…

    • No worries, there’s going to be an election pretty soon. And the ratification of the treaty would be after the election.

      • MagyarViking

        If the Hungarian electorate elects a new Parliament that accept this agreement, then Hungarians in general deserves every piece of scorn it will get as Russian whores

        • FUCeausescu

          Mr. Viking, with this argument we would have to expect Hungary to stop trading with all neighboring nations. Romania, Slovakia, Ukraine, Serbia all took huge chunks of teritiory, including regions with majority ethnic Hungarian population, with the consent of western powers who thought it would be fun to condemn 1/3 of all ethnic Hungarians to be other people’s doormats. The Turks invaded and occupied while the Austrians came in and took a chunk for themselves. So, who is left?
          There is nothing wrong with having trade deals with Russia or most other countries. The main criteria for any deal is to choose the one that is most advantageous. If the Russian offer cannot be beat, than what is the problem? This is pure fearmongering, because you cannot stand the fact that there is a $10 billion investment comming Hungary’s way.

          • MagyarViking


            “The main criteria for any deal is to choose the one that is most advantageous”
            This Whorban kickback deal is the only game in town…or you care to show any bids?

            “you cannot stand the fact that there is a $10 billion investment comming Hungary’s way”
            Are you joking?
            Putin is not giving away this, the Hungarian Tax Payers, who you do not belong to, are going to pay this today $14 Billion investment, that most likely will be 2-3 times more before finished 15 years later
            And with this big investment Putin will have all Hungarian leaders in his pocket for the next 30 years
            You guys just joined the Warsaw Pact volountarily, again…

  • Democrat

    What interesting people we do business with these days….http://en.wikipedia.org/wiki/Sergey_Kiriyenko. I cannot imagine FIDESZ doing business with a Hungarian whose grandfather was of KGB calibre and who himself had been blamed for a financial crisis.

  • MagyarViking

    Time to start a Ukrainian revolution…this IS the question the Unified Opposition can win a high number of votes on, even splitting Fidesz Top Management from its major support, so just out there and hammer out the message…

    This question will also make “Jobbik” look like the little pro-Putin whores they are, together with the minority pro-Fidesz supporters like PutinPutaleto. and remove the initiative from “Jobbik”, making voters who voted for “Jobbik” for the first time in 2010 really question if they want to vote for “Jobbik” or just skip the election. That can be 100.000 to 300.000 “Jobbik”-voters from 2010 – and they can obviously not go to Fidesz due to this issue

    Time to man the barricades…

    • szebbjovot

      😀 😀

      You get such strong wet dreams out of something so little, Swedish homonazi 😀

      • MagyarViking

        So, you line into the Russian Whores going around with a open mouth always ready to suck one of Putin’s local dicks?

        • szebbjovot

          The swedish homonazi who supports whoring himself and Hungary out to the EU, Germany and USA is calling somebody else a whore??

          • MagyarViking

            Yes, then in the EU, as a member state, Hungarians are equal to other citizens. There is no difference in your and my rights as citizens
            As Putin’s drones, you are just the little Russian whores you always loved to be…

          • szebbjovot

            ” you are just the little Russian whores you always loved to be…”

            Swedish moron, History proves the complete opposite. If you are going to spout nonsense about Hungary, you should at least get familiar with our history.

            “Yes, then in the EU, as a member state, Hungarians are equal to other citizens. There is no difference in your and my rights as citizens”

            And you believe this? 😀

          • MagyarViking

            “get familiar with our history”
            As you want it to be told today, yes, but soon Russia will be Hungary’s best friend, with “open mouth”-support from “Jobbik”-supporters as yourself…just forget what Whorban said about that puccs in 2008…

            Just look at that story – in less than 5 years history has been re-written, so “Hungarian History” has an obvious Best-After-Date

          • Earnest

            Everyone but the Hungarians can see what’s coming. Oh well, at least the anthem won’t lose its relevance. New things to weep about are in the making.

    • Time to throw you out of this country, Swedish libnazi…

      • MagyarViking

        What is wrong with restoring OPNI to its previous glory and store dissenting minds there?
        Putin loves that, so?

        Just keep your mouth open and wear kneepads…

    • DoubleH63

      “Time to man the barricades…”

      Munkásököl vasököl, oda üt, ahova köll!

  • MagyarViking

    Here is what Putin’s megaphones state before the agreement:
    “Any deal with Russia could prove controversial for Orban because no formal bidding process for the plant’s expansion has yet been launched.

    European Union rules which Hungary accepted when it joined the Brussels-based bloc in 2004 stipulate that any state project must be awarded through a bidding process.

    But some experts note that Orban could try to sidestep the regulation by arguing that the Russian contract was awarded for the expansion of an existing facility and not the construction of a new plan”

  • MagyarViking

    Whorban licking ass:
    “”We value the progress achieved by your leadership,” the conservative Hungarian premier told the Russian leader.”

  • MagyarViking

    Putin smiles while his Hungarian whore seal his kickback from RosAtom with a handshake

  • MagyarViking

    Hungary imports
    * 80% of its oil from Russia
    * 75% of its gas from Russia
    * the only nuclear power plant is 100% delivered by Sovietunion and now the extension will be delivered by its successor, Russia

    Diversity of energy supply is a solid Hungarian thing, as long as it comes from Russia…

    • FUCeausescu

      Perhaps once the new reactors are operational there will be less gas purchased from Russia to produce electricity. How can that be a bad thing, especially in light of natural gas delivery disruptions in past years? As far as the rest of your criticism, I’m afraid unless you can show that it was overall a worse deal than what other nuclear power companies offer, I honestly don’t see the problem. All I see is some fearmongering “the Russians are comming”

      • MagyarViking

        Yes, goose step into line with open mouth and knepads mounted
        Care to show the financial calculation for the price of electricity from these new reactors?

        * Will Hungary be able/allowed to by fuel from any other suppliers than the Russians?

        * How many Trillions of Forints has been reserved and hence calculated into the price for the demounting and destruction and thousand of years of safe-keeping of radioactive waste?

        * How many Trillions of Forints has been reserved in funds for the costs that no insurance company will pay for if there is a severe accident?

        * And how much will the price of gas be in 2023?

        * How much would it cost to harvest the thermal energy Hungary is sitting on, to facilitate a lower level of electricity, gas and oil to heat up Hungary?
        Would this not lead to more jobs, on a lower skill level than a nuclear engineer, distributed more evenly over Hungary, supporting a better development of the Hungarian countryside?

        * What would it cost to support local industries to develop better isolation materials, sourced locally and renewable energy, by nature sourced locally, with many more local jobs distributed over Hungary?

        If the biggest economic motor in Europe can seriosly not only contemplate, but even going ahead in full speed with their EnergiWende, so why cannot Hungary?
        Do not give me that BS on that this is to expensive, when Whorban just is borrowing 10 BEUR for this PAKS-debacle

        • FUCeausescu

          I don’t see why any of the other options such as geothermal or better insulation need to be off the table because of this deal. Besides, as far as I know in Hungary people tend to use gas for heating, not electricity, so insulate away to reduce reliance on natural gas even further.
          This nuclear plant will not cover all domestic electricity demand, so still room for other options such as renewables, therefore you are making a false argument.
          The fact that you ended your statement by calling it a debacle even before you know the details of the deal in its entire finalized form tells us how objective you are in your criticism by the way.

          • MagyarViking

            “I don’t see why any of the other options such as geothermal or better insulation need to be off the table because of this deal”
            Well, that just shows how litthe you understand about how Hungary’s economy works and the political realities in Europe
            It is very simple:
            a) There will be no money to invest in anything else regarding energy

            b) This project, guaranteed by the Hungarian State, will toigether with the Pension liability Whorban created, totally dominate Hungarian politiucs and Government for the next 15 years at least. These two things will eat any other investment and costs for both will skyrocket

            c) Any investment on a larger scale of thermal energy needs a lot of money and the build up of a different infrastructure – Where will the money come from that?
            More loans, more debts….

            You complain I call this a debacle before I know the details?
            Where are the details?
            Whorban has signed a deal that ties Hungary to Puting for 30 years to come and we still do not know the details and the biggest horror is that “the details are still being discussed”…
            So signing up without any way out and creating less pressure from the Russian side to up their demands, then the signature is already there…no reason to be Mr Nice Guy anymore from the Russians…
            Whorban is trying to do what Hungarians normally always tries to do:
            a) Sign the deal
            b) Start renegotiating the terms
            The problem is that the Russians knows that game very well, then they invented it

      • pantanifan

        I don’t know enough to say whether this is the best deal for Hungary or not, but what seems strange to me is the report that the Russians will be giving a 10 billion euro loan for this project. Why would they do that? Presumably they are offering the loan at below the market rate, or Hungary would get the loan from elsewhere…? I can only think of two possible reasons (there may be others which I haven’t thought of?):

        1) Hungary is paying too much for the deal, so it’s worth giving favourable finance…
        2) The Russians expect some “political favours” in return…

        • FUCeausescu

          The loan is pre-financing of the project, which automatically makes it viable. To better understand the benefit look at what happened in Romania with their hopes of expanding their nuclear powerplant. They had a few western companies interested in the project but none came with pre-financing, as a result it all fell apart because good financing terms could not be secured for the project. They wasted about five years, and now nothing is happening.

          • Democrat

            Pre-financing is nothing to do with viability. Particularly when the interest rate seems not to be known. If a project like this is financially viable (returns exceed interest and capital outlays) then financing will generally become available. The suspicion in this case is that Hungary will pay interest plus some other form of return, which of course will be classified as a state secret. The real issue here of course is that foreign investors (other than Russia) are now unwilling to make large long term investments in Hungary because recent moves have threatened both ownership rights and returns (airport, water and power utilities, pension funds etc). Hungary will pay a high price for many years for this investment.

          • FUCeausescu

            Democrat, before you go ahead and atach ideological spin to your argument understand one thing. This loan is for 30 years. Few banks will give substantial loans for 30 years in a region that is looking to be on the verge of demographic collapse. Romania’s population shrank 15% in past 20 years and future looks even worse. Hungary’s population shrank about 5% since 1990 as well. I personally would have a hard time justifying the risk of holding on to debt in the region for 30 years. In 30 years some of the states in the region might not only go bankrupt but implode altogether. Russia is willing to take the risk because of strategic considerations in addition to business interests. Such investments might actually help a country like Hungary avoid becoming a failed state. So it is not about Fidesz and Socialists here, or whatever else gets you going.

  • MagyarViking

    Putin is using Russia’s control over energy resources to extend his sway beyond the former Soviet Union. Last month he pledged a $15 billion bailout and a gas price cut to Ukraine and promised to lend as much as $2 billion to Belarus. Rosatom is building nuclear power plants from Bangladesh to Iran.

    “Energy is being actively used by Russia as a component of economic diplomacy,” Lilit Gevorgyan, a senior economist at IHS Global Insight in London, said in a telephone interview today.
    “Moscow is quite successful in not only building pipelines toward the European market, but also making inroads into civilian nuclear development.”

  • MagyarViking

    Orbán Viktor: Magyarországon puccs van
    Magyarországon éppen puccs van, a magyar kormány puccsot hajt végre a parlament és saját népe ellen, mondta Orbán Viktor

    For those not understanding Hungarian:
    Whorbán Viktor calls the agreement between Russia and Hungary for a coup d’état…

  • Zoltan

    For all of you who really care: http://www.greenpeace.org/hungary/paks2/

    Who will take care of the nuclear waste for the last 10 years of the planned operation? Are we capable of building a waste disposal facility (or anything else) that will last hundred-thousands of years in our small country? Is anyone?

    Even if there would be no other alternatives for energy: Does this deal have to be planned in secrecy, rushed in a few weeks, just before election? Do the Russians really care what that loan would be spent on? Not on the campaign right? Oh wait, no, Mr. Putin is impeccable, he wouldn’t do such things right?

    Are we certain, that there will be no better alternatives coming in ~20 years? Do we have to agree on this?

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