© Laszlo Balogh / ReutersA general view of the Paks nuclear power plant reactor, 120 km (75 miles) east of Budapest.
The European Commission on Monday gave a green light to a new Russian-backed nuclear power project in Hungary, ending an investigation which began in 2015. The
project was challenged by Brussels, which accused it of non-compliance with EU rules.
The Commission said Hungary's investment in the Paks-2 nuclear plant, backed by a loan from Russia, did represent a form of state aid. It invalidated Hungary's argument that the project was economically viable and
imposed a number of conditions that came with the project's approval."During our investigation, the Hungarian government has made substantial commitments, which has allowed the Commission to approve the investment under EU state aid rules," said EU Competition Commissioner Margrethe Vestager.
An important project for Russia and Hungary, Paks-2 was agreed at the end of 2014.
The €12.5 billion contract, partly aided by Moscow's €10 billion loan, would add two new 1,200 megawatt (MW) reactors to Hungary's only operating nuclear power plant.
Comment: A little more background on these developments: