Apr 3, 2014

Fear and loathing at Paks -The fearful shadow of an irreversible tragedy / part 3.

€10 billion state loan from Russia to Hungary. Worst joke ever? Certainly, according to the Hungarian opposition. On 1st of April 2014, Hungarian State secretary János Lázár confirmed that Hungary had signed an agreement with Russia on credit for an upgrade of the Paks nuclear power plant but only after that Russian daily Vedomosti reported that Russia and Hungary had signed the agreement on the €10 billion state loan, based on information from Russian Deputy Finance Minister Sergei Storchak informed to the agency Interfax.


€10 billion loan from Russia with love and first due on 15th March 2026
The repayment period is set at 21 years. The loan covers 80% of the constructions cost. It can be used between 2014 and 2025. Hungary is set to repay the loan in euros. The first payment will be due on the 15th Match or 15th September which falls closest to the start of operations at new blocks no 5 and 6, but no later than 15th March 2026, reported Vedomosti. States secretary Lazar said that  the credit agreement would be submitted to the new parliament after the elections. The agreement has been sent on to Brussels too.
On the 27th of March, Hungarian Prime Minister Viktor Orban has come against new possible economic sanctions against Russia - reported the Voice of Russia Saturday, the 28th March, adding that - Russia and Hungary have recently signed an agreement to provide up to 10 billion euro to build the Paks nuclear power plant. "The sanctions won’t meet the EU interests. Moreover, these measures affect our relations," quotes the journal Prime Minister Viktor Orbán.
On 13th of March,...
it has been published on the the official russian bulletin website that the draft of the agreement recently signed, was approved by the Russian government the 10th of March, and that Russian Prime Minister Dmitry Medvedev appointed further negotiations on it among Russia’s ministries as well as with Rosatom and Vnesheconombank.
On the 6th of February the lower chamber of the Hungarian Parliament by the majority of votes has approved the terms of the intergovernmental agreement with Russia on the construction of two units of the Paks Nuclear Power Plant. The agreement on cooperation in utilizing nuclear power for civilian purposes - signed on the 14th of January during the visit to Moscow of Prime Minister of Hungary Viktor Orban provides for the construction of two units with the capacity of 440 MW each with a possible financing of the project by the Russian side, improving “Hungary's energy independence and issues with its energy security”. as Putin said.


The credit agreement of €10 billion not available in Hungarian
Bernadett Szél, co-president of LMP, the Hungarian green party, said it was outrageous that the Hungarian public learned about the signing through the Russian media and claimed the government to make public all the information related to the credit agreement.




Benedek Jávor co-president of the new green party PM (dialogue for Hungary), talked to the press on the 2nd April, requiring a Hunga-rian translation of the agreement to be made in 24 hours. Jávor also demanded the details of the signa-ture, letting Hungarians know who signed and when and werther the Hungarian parliament really needed to approve the document or not.  According the the russian language version there is no need to get it approved by the Hunga-rian parliament, contrary to what State secretary Lazar said before. Benedek Jávor highlighted that a loan of €10 billion for 30 years means a 100,000 HUF yearly tax for each and every Hungarian family, and electricity cost will also raise because of the construction. The Soviet-made VVER reactors (Water-Water Power Reactor) of the PAKS NPP generating approximately the half of electricity in Hungary were the first and currently the only operating nuclear power station in Hungary. The Party PM is opposed to the construction of any new reactor and would focus on other alternative energy sources.


MVM goal#1: prolonged operation of Unit 2
According to the infromat of the company MVM, handling the Paks NPP, sent to the Hungarian news agency, MTI, on the 2nd April, in the last year 50,7 percent of produced and 36,4 percent of the consumed electricity was provided by the Paks NPP. The main goal of the company in terms of Paks NPP for the year 2014 remains the validation of the service-time extension of Unit 2, which original design service time, set in 30 years, expires in 2014.

see also:
Fear and loathing at Paks -The fearful shadow of an irreversible tragedy / part 2. and
Fear and loathing at Paks -The fearful shadow of an irreversible tragedy / part 1.

sources: Hungarina news agency, Voice of Russia, politics.hu