Hungary’s economy will suffer if the government decides to pull out of a deal with Russia’s state atomic energy corporation Rosatom, warned Russian President Vladimir Putin on May 5. He was referring to an energy agreement that has been criticised by the European Union.
According to the International Business Times, the agreement is for Russia financing a nuclear power plant in Hungary. The EU is critical of the deal as regards the duration of the contract and the fact that Russia would become Hungary’s sole fuel supplier.
The plan, first announced by Putin and Hungary’s Prime Minister Viktor Orban in 2014, would be largely financed by a Russian loan covering 80% of the cost.
Putin has now warned that backing out of the contract or being forced to do so by the EU will be detrimental for Hungary.
“We offer good terms and advanced technology,” Putin was quoted as saying by the Russian news agency Tass.
“So, if the partner is forced to refuse [to cooperate], which certainly can be done, it would be damaging to Hungary’s national interests,” added Putin.
According to a report in the Financial Times, the controversial deal was revived after EU regulators approved a fuel contract for the $13bn Paks II energy plant, which is located about 100km from the capital city of Budapest.
http://www.neurope.eu/article/putin-warns-hungary-to-stick-to-energy-deal/