RUSSIA'S ROSATOM FOR HUNGARY

WNN - 10 July 2020 - Rusatom Service and MVM Group have formed a joint venture in Hungary to provide service and maintenance to nuclear industry facilities, conventional sources of power generation, renewable energy and oil and gas in Europe, they announced yesteday. The new company, European Power Services Ltd, will start work at the Paks nuclear power plant.

Rusatom Service is a subsidiary of Russian state nuclear corporation Rosatom, while MVM Group is Hungary's biggest power producer, which owns several power plants including the Paks Nuclear Power Plant subsidiary.

The existing Paks plant, which is 100 km south of Budapest, comprises four Russian-supplied VVER-440 pressurised water reactors, which started up between 1982 and 1987. Russia and Hungary signed an inter-governmental agreement in early 2014 for Russian enterprises and their international sub-contractors to supply two VVER-1200 reactors at Paks, including a Russian state loan of up to EUR10.0 billion (USD11.2 billion) to finance 80% of the project, which is known as Paks II.

"The main goal of creating a joint venture is to strive to combine the scientific and production resources of the enterprises of Rosatom State Corporation with the local engineering and applied competencies of the MVM Group," Rusatom Service said. "Thanks to this synergy, the companies will be able to service equipment and energy facilities as efficiently as possible, as well as create completely new opportunities for expanding their business in the competitive European market. We are deeply convinced that the modern customer is looking for something more from service than just a specific piece of equipment or service - it is looking rather for a convenient solution to his pressing needs," it added.

The Hungarian and Russian parties are the founders and owners of shares of the new legal entity on an equal footing, but in terms of corporate consolidation, European Power Services Ltd is part of the MVM Group and registered in Hungary.

In a separate statement, MVM Group said talks with Rusatom Service on possible cooperation began in October 2018, and on 15 April 2019 they signed a memorandum of understanding aimed at establishing a joint venture. The shareholder agreement between them and the articles of association of European Power Services Ltd were signed on 11 May this year, and the company was registered on 16 June.

The new company's business activities include improving the safety and efficiency of power plant systems, structures and components; supporting their operation; and maintaining and upgrading them. The company will also train specialists, perform installation and dismantling work, and procure and transport equipment, tools, spare parts and consumables.

MVM Group said European Power Services' work will start by drawing on the skills of MVM XPert Zrt, MVM Titán Zrt, MVM Nuclear Maintenance Ltd and MVM ERBE Zrt, as well as Rusatom Service and other Rosatom subsidiaries, in maintaining and upgrading Paks I. Through their joint venture, they also see opportunities for future cooperation in the Hungarian and surrounding markets, mainly in the Czech, Slovak, Ukrainian and Balkan markets, MVM Group said.

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