Content, legal status and consequences of the Putin-Orbán deal

On 14th January 2014 an intergovernmental agreement was signed in Moscow, by the Minister of National Development of Hungary, and by ROSATOM from Russia. The agreement, according to its title, is about to continue the cooperation on peaceful uses of nuclear energy (which was started by an agreement made in 1966), but practically it is about building two, at least 1000 MW new nuclear units at Paks. The original language of the agreement is Russian.

Beyond fixing some main obligations for both parties on the matter, Russia also undertakes the tasks of supplying nuclear fuel for 20 years (with a possibility of extension) for the units, and ensures the possibility of taking spent fuel (SNF) for storing or reprocessing. However, this possibility is given for 20 years only (or, if the time period of supplying fuel is extended, then for the same period), then the stored SNF or the reprocessed nuclear waste will be sent back to Hungary.

As the condition of implementing the content of the agreement, another, separate agreement has to be made on financing.

The draft agreement was communicated to the European Commission under Article 103 of the Euratom Treaty, on 10th of December 2013.The agreement was introduced to the Hungarian Parliament and was accepted on 6th of February.

On 14th of January three other framework agreements were signed by ROSATOM and MVM Paks II Ltd., allegedly on the construction, operation and fuel supply of the new units.