Moscow, 14 Jan. 14, 2014: Hungarian Prime Minister Viktor Orban (L) and Russian President Vladimir Putin (R) reached a deal on the Paks nuclear power plant modernization that may bend EU’s procurement rules (source: dpa)

EU faces dilemmas over Hungary’s nuclear deal with Russia

Hungary is officially upbeat about its agreement with Russia to expand the Paks-2 nuclear plant. But behind the hurrah-optimism of Prime Minister Viktor Orban and government officials, the 12 billion euro contract with Rosatom is encountering stiff resistance at home and abroad, writes GIS guest expert Peter Juhasz.

<i>Criticism has focused not just on the project’s environmental and economic risks, but also on its potential violation of European Union competition and procurement rules. That makes Paks-2 an important test case for the EU’s credibility. A vigorous attempt by Brussels to enforce the rules and hold up the project will infuriate Russia and may wel...

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 Peter Juhasz
Hungary cannot sign a final contract with Russian engineers or begin reactor construction without the necessary EU approvals and permits
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