Hungary’s previous government, led by former prime minister Viktor Orbán, signed a framework agreement worth more than HUF 1.3 trillion (EUR 3.7 billion) with a defence and space technology subsidiary of 4iG just weeks before the parliamentary election, according to reports by Hungarian media outlets HVG.

The agreement, reportedly signed in mid-March and entering into force in early April, commits the Hungarian state to a long-term cooperation lasting until 31 December 2035. The contract was concluded between the Ministry of Defence and the logistics branch of the Hungarian Armed Forces on one side, and 4iG Space and Defence Technologies Plc. on the other.

The value of the framework agreement is HUF 1,311,050,000,000, an amount so large that Hungarian media compared it to the state’s purchase price for Budapest Airport and several months of national pension spending.

Secretive digitalisation programme

According to the HVG report, the contract concerns the “digitalisation development programme of Hungary’s classified command and control system during special legal periods”. However, the exact scope of the programme has not been disclosed publicly.

The Ministry of Defence reportedly confirmed the existence of the agreement but refused to provide further details, citing national security and defence legislation that classifies the contract as non-public. The ministry stated only that the arrangement was the result of “several years of governmental preparation”.

Questions have also emerged over the timing of the deal. The agreement was signed by the government approximately one month before the election and became effective shortly before the vote itself, effectively binding the incoming administration to a major long-term commitment.

Hungary’s new government, led by Péter Magyar, is expected to review the agreement as part of the official governmental handover process.

4iG’s growing role in strategic sectors

Over the past decade, 4iG has expanded rapidly from a domestic IT company into one of Hungary’s largest telecommunications and technology groups, supported by a series of state-linked acquisitions and contracts during the Fidesz era.

The defence subsidiary involved in the agreement was established in 2024 and focuses on satellite technology, drone manufacturing, drone defence systems and earth observation data processing. The company has also launched the HUSAT satellite programme and is developing Hungary’s first dedicated space industry manufacturing centre in Martonvásár.

Despite its strategic ambitions, the subsidiary reportedly generated only around HUF 12 billion in revenue last year, while the broader 4iG group recorded HUF 764 billion. The newly revealed agreement, therefore, represents a contract value exceeding the subsidiary’s annual revenue many times over.

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Concerns over transparency

Opposition voices and analysts are likely to raise concerns about transparency and oversight, particularly given the classified nature of the project and the enormous sums involved.

Based on the Hungarian government’s 2025 defence budget, the framework agreement could account for roughly 7% of annual military expenditure if distributed evenly across its duration. Even within the defence industry, where projects are often exceptionally costly, analysts described the scale of the deal as remarkable.

Neither the Ministry of Defence nor 4iG has publicly disclosed whether any payments have already been made under the contract.

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Featured image: 4iG Headquarters in Budapest. Source: Wikimedia Commons