Brussels, 21/04/2015 (Agence Europe) - The European Commission confirmed on Tuesday 21 April that the Euratom Supply Agency (ESA) had approved the Russian-Hungarian contract for the supply of nuclear fuel as part of plans to extend the Paks nuclear power plant in Hungary.
“The ESA approved the contract with the Hungarian authorities yesterday (Monday 20 April). The contract between Hungary and Russia was submitted to the ESA on 7 April for conclusion after the Commission decision of 2 March and the rejection by the ESA of the first contract”, said the Commission spokesperson for energy matters, Anna-Kaisa Itkonen. As for the content of the contract, “ESA analysis shows that its request had been heeded, notably with regard to the duration of the contract and possibilities on diversification of fuel supply”, she said (our translation).
Hungary and Russia signed an agreement in January 2014 on extending the Paks power station, which generates 40% of the electricity consumed in Hungary. The extension plans will see two new 1,200 megawatt reactors built. The estimated cost is €12.5 billion, 80% of which will be financed by Russia by means of a loan of up to €10 billion. Work is due to begin in 2018 and the first reactor will come into service in 2023.
The ESA had refused to give its approval to the nuclear fuel supply contract linked to this agreement on the grounds that the fuel to be used would be supplied from only one source - Russia.
With regard to publication of the contract, the Commission said on Tuesday that ESA contracts are, in general, subject to commercial confidentiality and that, in the specific case of the Russian-Hungarian contract, the Hungarian government had classified the contract as secret. However, an internal procedure at the Commission declassifying certain documents in this case is on-going, said Itkonen, promising that these documents would be published as soon as possible. (Emmanuel Hagry)