Hungary’s nuclear regulator has granted a license to develop two new reactors at the Paks nuclear power plant, to be built by Russia’s Rosatom, under an agreement signed in 2014 between Budapest and Moscow.

Despite serious delays, the project, which was awarded without a tender to Rosatom, has often been cited as “proof of the close ties” between Hungarian Prime Minister Viktor Orbán and Russian President Vladimir Putin.

In a decision published on its website late on Thursday, Hungary’s Nuclear Energy Authority said the existing Russian-built 2 gigawatt plant in Paks can be expanded with two new reactors, pending further permits.

Hungary plans to expand the Paks plant (100 kilometers outside Budapest ) with two Russian-made reactors, each with a capacity of 1.2 gigawatts. Nuclear power is not subject to sanctions by the European Union.

The plans for the two new reactors serve Hungary’s strategic interests, Foreign Minister Péter Szijártó said after a meeting in May with Rosatom’s chief executive. According to what has been reported, Russia will give Hungary a state loan of up to 10 billion euros for the new project, while the total cost of works at the plant will amount to 12.5 billion euros.

The Paks plant currently has four small Russian-made reactors with a combined capacity of about 2,000 megawatts, which began operating between 1982 and 1987. The plant now produces almost half of all electricity in Hungary.