Putin meets Orban for the eighth time in seven years

Putin meets Orban for the eighth time in seven years
President Putin (left) officially came to Budapest for the opening of the World Judo Championships. / Photo: CC
By bne IntelliNews August 29, 2017

Russian President Vladimir Putin held an informal meeting in Budapest with Prime Minister Viktor Orban to discuss energy issues on August 28. Putin officially came to Budapest for the opening of the World Judo Championships as honorary president of the International Judo Federation but Russian sources say he was invited by the Hungarian premier personally.

This is the second meeting between the two in six months and the eighth since 2010. With such frequent visits to an EU and Nato member country, the Kremlin can present itself as a country that is not isolated, political scientists said. The Russian president has become one of the strongest allies of Viktor Orban, they added. Opposition parties criticised this, saying Hungary is shfiting away from European values and choosing the East over the West.

Orban joined Putin at the judo event, where they first watched the competition before holding talks. No information came out of the meeting by the state-owned news agency until late at night when Foreign Minister Peter Szijjarto's short press statement was released. The government communication office did not give out any communique during the day.

Szijjarto said nothing can stop the start of the construction of the new nuclear blocks at the Paks power station (Paks 2), which will begin next year after a 22-month delay.

Under the inter-governmental deal signed in January 2014  Russia add two new units to Hungary's only nuclear power plant, which accounts for half of the country's electricity needs. Russia will also lend Budapest €10bn of the €12.5bn project costs. From the investment, 40% of the investment value, or $5bn, will be carried out by Hungarian subcontractors.

The European Commission has investigated the deal but has cleared it on certain conditions.

There remain, however, questions over the need for the plant and over the terms of the Russian financing.

Hungarian government officials have raised the possibility of taking out a loan at better conditions and using that to refinance the Russian loan. Under the financing part of agreement Russia would finance 80% of the cost at 3.95-4.95% interest until 2047. There are also harsh terms attached to the funding.

No details were released on any discussions the topic of financing of the expansion, except for Putin's assurance that the Russian funding of Paks 2 is guaranteed. “As regards the financing of the Paks project, it is ensured, $12bn," he said, Ria Novosty news agency quoted Putin as saying.

The Russian president also commented: “Despite difficulties, economic relations are shaping up well. Last year there was a 9% drop in trade but growth reached 27% in the first half of the year and Russian investment projects in Hungary amounted to $1.5bn."

At the arena activists of opposition parties protested in gay clown masks, but they were led out by security. Masks have become the symbols of freedom of speech in Russia after they were banned. Protests against Putin's visit were also held in other parts of town. 

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