EU blocks Hungary-Russia deal on Paks expansion

Brussels (MTI) – The European Commission has blocked a 12 billion euro agreement signed between Hungary and Russia for the expansion of the Paks nuclear power station, British business daily Financial Times reported on Thursday citing unnamed sources.

The details of the decision have been kept secret but it was made at a meeting in Brussels last week of all 28 EU commissioners, including Hungary’s Tibor Navracsics, the paper said.

According to the paper, many EU officials also expressed concerns that Moscow was using energy policy to divide Europe. The approval of the European Atomic Energy Community (Euratom) is required for nuclear fuel supply contracts signed by European Union member states and Euratom refused to approve Hungary’s plans to import nuclear fuel exclusively from Russia, the paper added.

To revive the decision, Hungary will need to sign a new fuel contract or initiate legal action against the EC, the paper said.

According to the paper’s sources close to the talks, Hungary appealed against the decision, but the EC has now given its support to Euratom’s rejection of the contract.

“The result is to block the whole Paks II expansion,” the paper said and quoted Javor Benedek, Hungarian member of the European Parliament’s Green group, stating that “if the Russians now refuse to modify the original contracts, this will be the end of the road for the project.”

According to the paper, the decision could increase tension between Brussels and Moscow.

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Source: http://mtva.hu/hu/hungary-matters