Hungary, Russia examining payment mechanisms for gas, Paks-2 – Foreign Minister

MOSCOW, December 11 (RIA Novosti) – Hungary and Russia remain committed to ongoing energy cooperation and are currently exploring payment mechanisms for gas supplies and work on the Paks-2 nuclear power plant (NPP) in light of US sanctions against Gazprombank, Hungarian Foreign Minister Peter Szijjarto stated on Wednesday.

“We are currently comparing and developing various payment methods for the work on Paks-2 and gas supplies. Both sides are committed to maintaining energy supply,” Szijjarto said in a video published on his social media.

The Hungarian top diplomat also noted that he discussed the Paks-2 project with Russian state nuclear corporation Rosatom CEO Alexey Likhachev after the phone conversation between Russian President Vladimir Putin and Hungarian Prime Minister Viktor Orban. Szijjarto also announced plans to hold a conversation with Russian Deputy Prime Minister Alexander Novak about gas payments amid US sanctions on Gazprombank.

An amendment to the 2015 agreement between the Hungarian and Russian governments on the construction of two new units of the Paks NPP has earlier been submitted to the Hungarian parliament, which would allow the terms of the project to be changed due to economic circumstances that have changed over a decade.

In late 2014, Russia and Hungary signed an agreement on the construction of new power units No. 5 and No. 6 at Paks NPP with reactor units based on the advanced Russian VVER-1200 design. The parties agreed that Russia would allocate a $10.5 billion loan to finance the construction of the units. A license for the construction of the power units has already been issued.

The Paks NPP is the only NPP in Hungary and is located 100 km (62 miles) southwest of Budapest. Currently, the Paks NPP generates almost half of Hungary’s electricity, and with the planned commissioning of two new Paks units, this share is expected to double. For Hungary, nuclear power is a way to ensure its energy security, the country’s leadership has said.