Sharply conflicting reports from Europe indicate that the European Commission has backed the region's nuclear fuel regulator Euratom Supply Agency's objection to a non-competitive nuclear fuel contract signed by Hungary and Russia.
At various stages of the news cycle, Hungary has denied that the commission has blocked the contract, which would put a $10.6 billion Paks Nuclear Power Station expansion project on ice.
Hungary and Russia agreed in principal on expanding the Paks plant in 2014. In December, Russia and Hungary signed contracts that set details in place, including a Russian loan that would cover 80 percent of the project costs and an exclusive fuel supply arrangement.
Objections surfaced quickly in the media. They included the lack of competitive bids for the massive construction deal and Hungary's increased reliance on Russia for its nuclear fuel. One of Euratom's key principles is to ensure diverse nuclear fuel sources.
Hungary's Secretary of State Andras-Giro-Szasz in a statement said he “firmly denied” the EC had blocked the Paks II contract and EC energy minister Maros Sefcovic said the matter was confidential in nature.
Hungary, in early March, declared details of the sensitive contacts were confidential for the next 30 years.
Back-to-back Reuters reports Friday morning, said that the plant expansion had “hit an objection in the European Commission that may oblige Budapest to revise the terms.”
An hour later, the wire service said “Hungary is nearing a deal” with Euratom about details of the contracts “after Euratom questioned elements of the deal.”