Hungary to review Paks nuclear plant expansion, ministerial nominee says
Hungary's Nuclear Power Strategy and Political Shifts
By Gergely Szakacs and Anita Komuves
Government's Approach to Paks Nuclear Plant Expansion
BUDAPEST, May 11 (Reuters) - Hungary will review the financing and implementation of the Paks nuclear power plant expansion project, the nominee for economy and energy affairs minister said on Monday, as the new government laid out its strategy after a landslide election win.
The 12.5-billion-euro ($14.7 billion) project to expand the 2-gigawatt Paks nuclear power plant with two Russian-made VVER reactors was awarded in 2014 without a tender to Russia's state nuclear corporation Rosatom, and has been delayed by years.
Political Background and EU Relations
Political observers often cited the project as a prime example of the close ties between Budapest and Moscow under former prime minister Viktor Orban, which the incoming government has vowed to change as part of a push to mend relations with the European Union.
Calls for Transparency and Review
"We need a transparent nuclear strategy," Istvan Kapitany told a parliamentary hearing.
"We have to review the financing and costs of Paks 2 (expansion project) and its implementation conditions. These are classified contracts, which we have not yet seen, we need to examine them," he said.
Financial Concerns and Stakeholder Responses
Project Cost Disputes
Centre-right leader Peter Magyar, who was sworn in as prime minister on Saturday, said last month that the cost of the project was over-inflated. Rosatom said it was ready to explain the price tag.
Rosatom's Statement
"Numbers are a rational thing. We can easily explain and justify them if the Hungarian customer needs it," Alexei Likhachev, director of Rosatom said in a statement.
"Ultimately, the Hungarian leadership and I have the same goal - to implement an important project for the Hungarian economy... as quickly as possible, as efficiently as possible and at the best price."
Future of Nuclear Power in Hungary
Kapitany said that nuclear power would continue to play an important role in Hungary.
He also vowed to fight corruption. Critics of Viktor Orban say graft was rampant under his rule, something the former prime minister denies.
Hungary's Foreign Policy and EU Relations
'RUSSIA WILL REMAIN A PARTNER'
The nominee for foreign minister Anita Orban told a separate committee that Hungary wanted to have an equal and transparent relationship with Russia.
"Russia will remain a partner but the relationship cannot be based on a one-sided dependency," she said. "In the current geopolitical situation it is clear that Russia's policies are posing a security challenge to Hungary and Europe."
Restoring Trust and Rule of Law
She said her first task would be to rebuild trust in Hungary which was eroded under the previous government.
Under Orban, Hungary was in almost constant conflict with the EU over issues ranging from the rule of law to minority rights. Budapest's continued close ties to Moscow despite Russia's war in Ukraine combined with its decision to block funds for Kyiv strained relations even further.
Judicial Independence and Anti-Corruption Measures
"Laws need to be passed that will ensure that Hungary's judiciary is independent, that public tenders are transparent, that corruption can be fought, wealth declarations can be checked and the use of European Union funds can be tracked," Orban said.
She stressed that Hungary would not send soldiers or weapons to Ukraine.
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(Reporting by Anita Komuves and Gergely Szakacs, additional reporting by Moscow bureau; Writing by Pawel Florkiewicz and Alan Charlish; Editing by Emelia Sithole-Matarise and Jon Boyle)
