Suspicious: Intelligence links found in four Russian companies operating in Hungary

In the wake of the war in Ukraine, there has been a notable increase in Russian business activities within Hungary. While many companies aim to safeguard their assets, an investigation by Szabad Európa has revealed connections between several companies and intelligence services/political circles.

The newspaper’s findings indicate that as of March this year, Hungary was home to a total of 674 Russian-owned companies.  97 of them have been established after the Ukrainian conflict broke out. According to Alexey Morozov, managing director of Starimpex Hungary Ltd, the most significant change observed is the increased desire of individuals from Russia to relocate to the European Union, Telex reports.

Hungary as best choice

Previously, Hungary was not a preferred destination for Russian businessmen, although they did invest in properties. However, the current scenario is different. Those arriving from Russia are fully committed to settling down within Hungary. Notably, they aim to dissociate from the ongoing political situation as most of them strongly oppose the Ukrainian-Russian conflict.

Furthermore, the paper received insights from a source within the start-up sector. They highlighted the growing challenges of managing business finances from Russia. Some Russian banks impose strict limitations on international transfers, with certain banks even prohibiting them altogether. This situation underscores the increasing necessity for establishing EU-based companies.

Spy links

Szabad Európa shed light on an intriguing company called ITK System. This enterprise holds a license from the Russian secret service and specialises in developing IT encryptions. Notably, the individual who owns the company seemingly has connections to the secret service.

The newspaper also reported on IRIAS Hungary, a mysterious “research institute” suspected of lobbying for involvement in the construction of Hungary’s second nuclear power plant, Paks II.

Additionally, DGK Navigation Ltd, a Hungarian company engaged in drone development, caught attention due to its owner’s dubious activities in both Hungary and Russia. The owner’s other enterprise, Gyronav, focuses on manufacturing precision gyroscopes and navigation systems vital for drone operations.

In April, the International Investment Bank, also known as the spy bank, withdrew from Hungary. Furthermore, the bank’s three executives found themselves on the US sanctions list. A comprehensive investigation by Direkt36 explored how the head of the Russian bank in Budapest attempted to protect his offshore billions before the imposition of sanctions.

Source: Telex