MOSCOW, July 31. /TASS/. Russian President Vladimir Putin approved the ratification of the protocol to the intergovernmental agreement on provision of a state loan to Hungary for the construction of a nuclear power plant (NPP).

The protocol updates the previously adopted procedure for repayment of the loan in connection with the sanctions imposed against Russia.

A government export credit of up to 10 bln euro was extended to Hungary under the agreement of March 28, 2014 for construction of two power generating units of the Paks NPP. Budapest honored its payment obligations on time and in full by February 2022. The principal debt balance is about 28.15 mln euro as of July 1, 2023.

It has become impossible for Russia to take payments in US dollars and euro because of the sanctions introduced by the US and the European Union. The finance ministries of Russia and Hungary held consultations to agree upon new conditions for the discharge of payment obligations. The protocol defines the repayment procedure by the Hungarian side for accruals since March 1, 2022.