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Russia provides financing for construction of Paks nuclear power plant — Putin

The project has received $12 billion, according to the Russian president

BUDAPEST, August 28. /TASS/. Russia has ensured financing for the construction of the Paks nuclear power plant in Hungary, President Vladimir Putin said at a meeting with Hungarian Prime Minister Viktor Orban.

"We are working on our major projects, including in the energy sector. As for financing of the well-known Paks project it has received $12 billion. The work on the site may start in the beginning of the next year," the president added.

The head of the Russian state noted that investors in Russia continue to show interest in Hungary, and to date the volume of investments has totaled $1.5 bln.

The Russian leader noted positive trends in Russia’s trade with Hungary.

"I would like to note that despite all the difficulties, economic dynamics is improving. Last year we had a decline in trade, although a slight one, with a small percentage. But in the first half of this year we had an increase of more than twenty percent, according to various estimates, even up to 27%," Putin said.

Putin also said that there are other joint projects, in particular, in pharmaceutical industry. He also noted the interest of Hungarian businessmen in Russia. "We support this in every way, we will help businesses promote their interests," the Russian leader said.

Russia and Hungary agreed to build two reactors at Paks in January 2014. Russia will extend a 10 bln euro loan to Hungary for the implementation of the project. The overall investments in the two new Paks reactors will not exceed 12.5 bln euros. The borrowed funds will be used through 2025.

The Paks nuclear plant was built in the late 1980s and now accounts for about 40% of Hungary’s electricity consumption.