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The university, in response to Direkt36\u2019s questions, did not deny that Szit\u00e1r-Csan\u00e1di was involved in their decision. The Ganz EEM, the Hungarian government, and Rosatom did not respond to our inquiries.<\/p>\n
The Russian partnership<\/strong><\/h2>\nGanz Engineering and Energetics Machinery Ltd was set up in 2008 when Ganz, one of Hungary\u2019s oldest industrial companies, teamed up with a company from the Rosatom group. At first, it looked like both sides found what they had been looking for and that this would be a fruitful partnership.<\/p>\n
Nuclear energy has long been part of Ganz\u2019s profile as the company was supplying machines for the existing Hungarian nuclear plant operating in the town called Paks and for other plants in the former socialist countries in Eastern Europe. Ganz wanted to maintain this line of business, but they knew that the only way to do that was if they could participate in the construction of new plants. Rosatom, still dominant in this region, seemed to be a natural partner for Ganz EEM.<\/p>\n
At the same time, the Russians were also looking for partners in Hungary. In the 2000s, Hungarian decision makers were already contemplating the expansion of the existing nuclear plant and the Russians did not want to stay out of it.<\/p>\n
\u201cThis was important geopolitically as well, and for the Russians the first step is always to get a key position in the industry,\u201d said a source familiar with Rosatom\u2019s activities in Hungary. Ganz was practically the only company that had the proper background for such a partnership.<\/p>\n
The joint venture was created when the Russians bought shares in an old Ganz company, which was then renamed to Ganz EEM. The Russians wanted majority ownership that would allow them to pick the management as well. Eventually, Rosatom (through one of its companies, Atomenergomas) became a 51 percent owner of the company. The rest of the shares were in the hands Ganz Machinery Works Ltd.<\/p>\n
Fighting over money<\/strong><\/h2>\nIt took only seven months for the first conflicts to emerge, company records show.<\/p>\n
The Russian side did not deliver the promised orders for Ganz EEM, which kept the 2009 revenues of the company below the mutually set goals. The Hungarian side also claimed they were the main financers of the company, although previously the two parties had agreed on mutual responsibilities. Therefore, at a members\u2019 meeting in 2009, Ganz Machinery Works requested compensation from Rosatom. The Russians accepted the concerns of the Hungarians, and, according to a source familiar with Ganz EEM\u2019s inner workings, paid what the Hungarians asked for. The source added, however, that this clash was just a prelude for much more serious conflicts.<\/p>\n
Later, the Hungarians raised concerns over the Russian managing director. At a members\u2019 meeting they pointed out that the company accumulated significant debt (in 2010, Ganz EEM lost 540 million forints (1.7 million euros)). The Hungarians wanted a change in the management. The Russians accepted this as well and at they agreed to dismiss the managing director at the same meeting.<\/p>\n
Soon afterwards, in August 2011, a new director, Attila Szit\u00e1r-Csan\u00e1di, was appointed. Szit\u00e1r-Csan\u00e1di, who was born in the former Soviet Union (in a territory that is now part of Ukraine and known for having high number of ethnic Hungarians), has a close relationship with Rosatom\u2019s Russian management, according to people who know him.<\/p>\n
![\"\"](\"https:\/\/www.direkt36.hu\/wp-content\/uploads\/2018\/02\/Szit\u00e1r-Csan\u00e1di-forr\u00e1s-Ganz-EEG.jpg\")
Left Szit\u00e1r-Csan\u00e1di Attila<\/p><\/div>\n
Szit\u00e1r-Csan\u00e1di also made it clear that when it comes to the joint venture, he is firmly with the Russian side. At a members\u2019 meeting he suggested that it is better if he gets his instructions directly from Russia because then it will be easier for him to carry out what the majority owner wants.<\/p>\n
Those who know Szit\u00e1r-Csan\u00e1di say that Rosatom is relying on him in the Paks 2 project even more than on the Russian nuclear company\u2019s official representatives in Hungary. A source familiar with the project\u2019s details said that Szit\u00e1r-Csan\u00e1di\u2019s job is to informally coordinate with those Hungarian companies that want to participate in the construction.<\/p>\n
The essence of Paks 2<\/strong><\/h2>\nAfter the first conflicts in Ganz EEM, for a while it seemed that things would be going smoothly again. In August 2012, a Rosatom delegation visited the company, and a few days later the Russian nuclear energy company announced that \u201cit wishes to rely more actively on Ganz EEM in the future.\u201d Afterwards, the company published several statements listing the business deals it won thanks to Rosatom. For example, it delivered pumps for the Rostov nuclear power plant and other devices for another nuclear power plant near St. Petersburg. In its statements, the company highlighted that \u201cthe closed Russian nuclear energy market opened up for Ganz.\u201d<\/p>\n
The involvement of Ganz EEM in the Paks expansion came up more and more frequently. In his press conference in December 2012, Szit\u00e1r-Csan\u00e1di said that the company can be part of this project \u201cthrough its world-class devices.\u201d After the signature of the Hungarian-Russian agreement about Paks 2 in January 2014, the Russian newspaper Kommersant<\/a> wrote that Ganz EEM could be one of Rosatom\u2019s Hungarian suppliers .<\/p>\n
It took only seven months for the first conflicts to emerge, company records show.<\/p>\n
The Russian side did not deliver the promised orders for Ganz EEM, which kept the 2009 revenues of the company below the mutually set goals. The Hungarian side also claimed they were the main financers of the company, although previously the two parties had agreed on mutual responsibilities. Therefore, at a members\u2019 meeting in 2009, Ganz Machinery Works requested compensation from Rosatom. The Russians accepted the concerns of the Hungarians, and, according to a source familiar with Ganz EEM\u2019s inner workings, paid what the Hungarians asked for. The source added, however, that this clash was just a prelude for much more serious conflicts.<\/p>\n
Later, the Hungarians raised concerns over the Russian managing director. At a members\u2019 meeting they pointed out that the company accumulated significant debt (in 2010, Ganz EEM lost 540 million forints (1.7 million euros)). The Hungarians wanted a change in the management. The Russians accepted this as well and at they agreed to dismiss the managing director at the same meeting.<\/p>\n
Soon afterwards, in August 2011, a new director, Attila Szit\u00e1r-Csan\u00e1di, was appointed. Szit\u00e1r-Csan\u00e1di, who was born in the former Soviet Union (in a territory that is now part of Ukraine and known for having high number of ethnic Hungarians), has a close relationship with Rosatom\u2019s Russian management, according to people who know him.<\/p>\n
Left Szit\u00e1r-Csan\u00e1di Attila<\/p><\/div>\n
Szit\u00e1r-Csan\u00e1di also made it clear that when it comes to the joint venture, he is firmly with the Russian side. At a members\u2019 meeting he suggested that it is better if he gets his instructions directly from Russia because then it will be easier for him to carry out what the majority owner wants.<\/p>\n
Those who know Szit\u00e1r-Csan\u00e1di say that Rosatom is relying on him in the Paks 2 project even more than on the Russian nuclear company\u2019s official representatives in Hungary. A source familiar with the project\u2019s details said that Szit\u00e1r-Csan\u00e1di\u2019s job is to informally coordinate with those Hungarian companies that want to participate in the construction.<\/p>\n