Putin will discuss with the Prime Minister of Hungary, prospects of development of trade and economic relations

MOSCOW, February 17. The President of Russia Vladimir Putin will meet Thursday with Prime Minister of Hungary Viktor Orban, who will visit Moscow on a working visit.

According to the press service of the Kremlin, the two leaders plan to discuss prospects of development of trade and economic relations, the promotion of joint projects in energy and high technology, as well as cooperation in cultural-humanitarian sphere.

The last meeting between Putin and Orban held a year ago in Budapest. The Kremlin hopes that the visit will enable the parties to move forward in the implementation of the agreements reached the year before.

Will also exchange opinions on topical international issues.

Meeting in Budapest

During last year’s meeting, the two leaders discussed issues of bilateral cooperation in the gas sphere, including on the background of forced renunciation of the project of gas pipeline “South stream”. Also was discussed the project of construction of two new units at the Hungarian nuclear power plant Paks, cooperation in agriculture and health, as well as other topical issues, including the European sanctions against Russia.

According to the results the parties signed a package of five documents – the agreement on interregional cooperation, on cooperation in the field of higher education, on cooperation in the field of healthcare, the document about opening of the Consulate General of Hungary in Kazan, and the agreement on personnel training in the field of nuclear energy.

Bilateral cooperation

According to Hungarian statistics for January-October 2015, who leads the trade mission of the Russian Federation in this country, the trade turnover between Russia and Hungary decreased by almost 50% to $4.5 billion Russian exports declined by more than 50%, and counter imports by 41%. Russia’s positive balance of bilateral trade balance decreased by 58% to $1.6 billion Roughly the same dynamics is shown and data FCS (in spite of some difference of techniques of the trade statistics of two countries).

See also

Kiriyenko: Rosatom does not exclude the possibility of building two more units for the Paks NPP

Hungarian Prime Minister: signing long-term gas contract with Russia postponed

Rosatom: Russia will help Hungary to prepare a new generation of nuclear engineers for nuclear power plants modern

The basis of commodity structure of Russian exports to Hungary are primary energy (over 80%), the share of manufacturing is about 10%.

Hungarian companies doing business in various sectors of the Russian economy, in particular in the banking sector (OTP Bank), in the pharmaceutical industry (JSC “Gedeon Richter”), construction, food industry, agriculture, etc.

Russian investments in the economy of Hungary is concentrated in particular energy, banking (in particular, a subsidiary of Sberbank), metallurgy.

Russian companies are also involved in the transport projects of the country. So, at the end of last year, “Metrovagonmash” (part of Transmashholding) won the tender for repair of 222 cars for the Budapest metro in the amount of about 220 million euros.

One of the largest investment projects of Russia in Hungary is the construction of new power units of NPP “Paks”, which the Russian side is engaged GK “Rosatom”.

Russia and Hungary agreed to build new units in January 2014. For the project, the Russian side gives Hungary a state loan of up to £10 billion Total investment in the construction of two units at the site of Paks will not exceed £12.5 billion Agreement involves the use of borrowed funds in the period 2014-2025. The interest rate varies from 3,95% to 4,95% per annum.

NPP Paks is the only nuclear power plant operating in Hungary. Built by the Soviet project, all four reactors of type VVER-440. NPP produces over 40% of all electricity generated in the country.