According to the Washington Post, Viktor Orbán’s policies are weakening the European Union from within. In a critical report on the first few months of Hungary’s presidency of the EU, the paper addresses issues ranging from “troll diplomacy” to Orbán’s visit to Moscow.
“As soon as Prime Minister Viktor Orbán assumed Hungary’s presidency of the European Union in July, one thing was clear: he increasingly stands for everything the EU opposes,” writes The Washington Post in a recent article on the Hungarian EU presidency. The paper examined Orbán’s first two months of the rotating presidency, raising concerns over whether the Hungarian Prime Minister is aligned with or against the European Union’s goals.
EU presidency turning to “troll diplomacy”
“The problem is that Orbán increasingly stands for everything the EU opposes,” The Washington Post writes, citing as an example last year’s national consultation on issues such as migration, LGBTQ+ rights, and support for Ukraine, At the time, AP News wrote of the national consultation that it struck “a combative tone toward the EU,” accusing it of “trying to force policies on Hungary.”
Péter Krekó of the Center for European Policy Analysis told the WP that the first two months of the Hungarian EU presidency have descended into “troll diplomacy,” with Orbán wanting to “provoke more anger from the leaders of the European Union.” The paper recalls the Prime Minister’s controversial visit to Moscow as part of his “peace mission,” which also included meetings with Chinese President Xi Jinping in Beijing and with Donald Trump at Mar-a-Lago.
All of this, The Washington Post highlights, occurred despite the fact that China is increasingly regarded as the European Union’s “systemic rival,” and that the EU has “embraced US President Joe Biden after four especially acrimonious years with Donald Trump.”
Putin and Orbán meet in Moscow in July. Photo: Viktor Orbán / Facebook
Washington Post: EU leaders displeased with Orbán
In a scathing description of the status quo, the Washington Post writes that
“In the halls of the EU institutions from the parliament to the executive European Commission, every day officials are on the lookout for what Orbán might do next to discredit the bloc until the end of the year.”
One indication of the growing dissatisfaction felt by EU politicians towards the actions of the Hungarian Prime Minister is that the meeting of foreign ministers on Thursday was organised in Brussels rather than Budapest. Furthermore, as the Washington Post points out, some states have already refused to attend other meetings in Hungary, sending lower-ranking bureaucrats instead of ministers.
However, as the decision-making process of the European Union often requires unanimity, “taking tough action is extremely difficult,” giving Hungary significant bargaining power when it comes to contentious issues.
Hungary: middleman between the EU and other states
Despite the often harsh criticism levelled against the European Union by the Orbán government, Hungary has no plans to leave the bloc, the Washington Post adds, quoting Orbán’s statement at a summer camp: “In Brussels, we are not passive, but we have set up shop there: we are not moving out, but moving in.”
Hungary’s position as an EU member also makes it important to nations like Russia and China. According to the Washington Post, for these states, Hungary provides “a foot in the door of the massive bloc they would not have if Orbán chose to leave the community he loathes.” Péter Krekó adds “I would absolutely agree that what Orbán does is usually serving the interests of Russia and China, but it serves his own interests as well — Orbán wants to weaken the European Union from within.”
Read also:
EU foreign ministers to discuss ‘dangerous proposals’, says Orbán cabinet – HERE
‘War psychosis’ still rampant in Brussels, says FM Szijjártó – Read HERE
A meeting of eurozone finance ministers scheduled for 13 September in Budapest may be cancelled, following a decision by Irish Public Expenditure Minister, Paschal Donohoe, who is set to lead the session.
Budapest meeting of eurozone finance ministers at risk
Politico reports that the upcoming Eurogroup meeting of eurozone finance ministers in Budapest on 13 September is at risk of cancellation due to growing discontent over Hungary‘s close ties with Russia. Paschal Donohoe, the Irish Public Expenditure Minister and head of the gathering, will decide by next week whether to proceed, as some ministers, including those from Germany, Estonia, Finland, and Lithuania, have signalled their intention to boycott. The European Commission has also withdrawn its participation from meetings during Hungary’s EU presidency. The decision on whether to cancel the meeting may depend on discussions at upcoming talks in Brussels.
Hungarian Ministry of Finance reacts
However, Telex notes that despite these concerns, the meeting of eurozone finance ministers remains officially on the agenda, as confirmed by a Eurogroup spokesperson. When contacted by ATV, the Ministry of Finance did not comment on this particular meeting, instead referencing a different upcoming EU finance ministers’ meeting. The Ministry stated:
The Ministry of Finance is currently working on preparations for the September meeting in Budapest. In addition to the central bank governors, the two-day high-level meeting will be attended by the Managing Directors of the IMF, the Presidents of the EBRD and the EIB, and the Secretary General of the OECD, among others.
The Hungarian Finance Minister added:
In recent years, Europe has fallen significantly behind its competitors, and the Hungarian Presidency aims to restore the EU’s competitiveness. The Hungarian position is that there is no room for ideological and political debates in this work; we must work together on the challenges facing the EU.
Photo: FB/Mihály Varga
Not the first boycott and probably not the last
The potential boycott of the Budapest meeting of eurozone finance ministers is not the first instance of EU member states boycotting meetings in Budapest during Hungary’s EU presidency. Germany, Sweden, Finland, Poland, and the Baltic states—Estonia, Latvia, and Lithuania—have all announced plans to skip informal meetings during Hungary’s six-month presidency. In July, several EU finance ministers publicly criticised Hungarian Prime Minister Viktor Orbán for meeting with Russian President Vladimir Putin rather than prioritising aid to Ukraine. Orbán’s recent visits to Russia and China, without prior coordination with EU leaders, have further unsettled member states and left EU politicians fuming.
Hungary is ready for the heating season and natural gas supplies are continuous from the south, Péter Szijjártó, the minister of foreign affairs and trade, said in St Petersburg on Friday, adding that the country’s energy security was “guaranteed in the long term”.
Szijjártó held talks with Alexey Miller, the CEO of Russia’s state gas company Gazprom, and the foreign ministry quoted him as highlighting the importance of the Turk Stream gas pipeline in terms of Hungary’s gas supplies, as well as Hungary’s 15-year gas purchase agreement with Gazprom, signed in 2021.
“The long-term agreement and the secure transit route in the south guarantee that natural gas delivery for Hungary is uninterrupted and stable despite an extremely difficult geopolitical environment,” Szijjártó said, according to a ministry statement.
“Gazprom is meeting its commitments taken in the 2021 agreement; Turkiye, Bulgaria, and Serbia, as reliable transit countries, ensure a continuous supply of gas from Russia to Hungary,” the minister said.
He noted that Hungary had received some 5.6 billion cubic metres of gas via Turk Stream last year, while since the beginning of 2024, the volume of gas received had amounted to 4.8 billion, highlighting the increasing importance of the southern route.
“Our gas storage facilities are 89 percent full … an amount which could cover 57 percent of Hungary’s annual demand,” Szijjártó said, adding that the European average of gas reserves was 27 percent of the total storage capacity.
Szijjártó highlighted Gazprom’s commitment to meeting their contracted obligations in full and said “our commitment is the same; this is a mutually beneficial agreement that we would not give up in any way.”
“Purchasing natural gas from Russia does not fall under any sanctions and our goal is clear: we want to and will ensure Hungary’s energy supplies and will not accept any related restrictions,” he said.
Most EU member states are considering steps that could lead to the escalation of the war in Ukraine, Hungary’s defence minister said after an informal meeting of EU defence ministers in Brussels on Friday.
The meeting had a pro-war atmosphere with all addresses calling for continued military support to Ukraine, Kristóf Szalay-Bobrovniczky told a press conference.
Defence minister: The only solution is through diplomacy
He reiterated the Hungarian government’s position that the only “enduring solution” to the conflict was through diplomacy with an immediate ceasefire and negotiations.
A proposal on conducting EU military trainings for Ukrainian soldiers in Kyiv was also discussed, the minister said, adding that such a step would carry the risk of an escalation of the war. “Hungary wants to prevent that,” he added, insisting that “dragging the EU and NATO into this conflict must be avoided”.
He said Hungary did not support proposals on providing financial support to Ukraine’s armed forces until Hungarian businesses were sanctioned in Ukraine and measures endangering energy supplies to Hungary were in place.
The minister noted Hungary’s continued active participation in EU military missions including the EUFOR Quick Response 24 annual exercise.
The current Hungarian EU presidency also supports other EU initiatives for the “global South including the Sahel region”, Szalay-Bobrovniczky said. Hungary will contribute from October to the EUNAVFOR Aspides military operation at the Red Sea and will participate in the EU’s military training in Somalia in 2025, he added.
Hungarian state oil and gas company MOL said on Friday that it has not been informed in any form about alleged plans to stop the operation of the Druzhba (Friendship) crude oil pipeline.
MOL not informed about Druzhba pipeline stoppage
In response to press reports about Ukrainian presidential advisor Mykhailo Podolyak stating that the pipeline supplying Russian crude to Hungary, the Czech Republic and Slovakia would shut down in January, MOL said: “We would be the first one to receive information about any changes.”
“We continue to have good business relations with the Ukrainian side and supplies are uninterrupted,” the company said.
Podolyak said in an interview cited by online news website hvg.hu that by stopping flows through the pipelines and excluding Russian energy, Moscow would lose its best market.
Czech energy security envoy Vaclav Bartuska told Reuters on Friday that any potential halt in oil supplies via the Druzhba pipeline through Ukraine from Russia from next year would not be a problem for the Czech Republic. He said Ukraine had also in the past warned of a potential halt, adding that “this is not the first time; this time maybe they mean it seriously — we shall see”.
In a surprising turn of events, Mykhailo Podolyak, advisor to Ukrainian President Volodymyr Zelensky, initially stated in an interview on Friday that Ukraine would completely halt Russian oil and gas transit to Europe starting 1 January 2025. This announcement, first picked up in Hungary by HVG, suggested that the Druzhba pipeline would cease operations, a move that would have caused significant disruptions for several EU countries, including Hungary.
Ukraine clarifies
Mykhailo Podolyak, adviser of Ukrainian President Volodymyr Zelensky. Source: Wikimedia Commons/Office of the President of Ukraine
The statement triggered an immediate response, resulting in notable market impacts, such as a sharp drop in MOL’s stock value. However, by the afternoon, Podolyak reversed his statement, contradicting his earlier claims, 444.hu writes in its report.
According to Ekonomicsna Pravda, Podolyak clarified that Ukraine remains committed to fulfilling its obligations related to Russian oil transit for as long as the relevant agreements are valid. He emphasised that Ukraine will adhere to bilateral agreements made with European countries and continue transporting oil through the Druzhba pipeline until these contracts expire, which is expected by the end of 2029.
He also reiterated Ukraine’s support for the European Commission’s efforts to encourage EU countries still dependent on Russian oil to seek alternative sources.
While oil transit via the Druzhba pipeline seems secured for now, the situation with gas is different. The Russian-Ukrainian gas transit agreement is set to expire at the end of this year, and Ukraine has no plans to renew it. Though this raises concerns about the stability of gas supply and potential price hikes, Podolyak hinted that gas could still flow through Ukrainian pipelines under new terms.
He noted that Ukraine remains open to transporting non-Russian gas, such as Kazakh or Azerbaijani supplies, provided that logistical needs and contractual agreements are met. This would define Ukraine’s precise role in the transit process moving forward.
The Druzhba oil pipeline, which supplies Russian crude to Hungary, Slovakia, and the Czech Republic, will cease operations starting 1 January 2025, according to a statement by Mykhailo Podolyak, advisor to Ukrainian President Volodymyr Zelensky. This development aligns with Ukraine’s decision to halt Russian gas transit through the Brotherhood pipeline, as Ukraine has opted not to renew its contract with Gazprom, which expires at the end of the year.
Ukraine open to helping, but not with Russian gas
Druzhba pipeline. Photo: Creative Commons CC BY-SA 3.0
In the past, Hungary received gas via this route, but in anticipation of Russia’s invasion of Ukraine, the country redirected the flow to the Turkish Stream pipeline from the south. Currently, gas continues to flow through the Brotherhood pipeline from Hungary toward Ukraine. Podolyak indicated that Ukraine is open to transmitting non-Russian gas through this route, such as from Central Asia, if appropriate agreements are made, HVG reports.
Europe, he noted, has diversified its energy sources, reducing its reliance on Russia, which no longer plays the dominant role it once did. Podolyak emphasised that should countries want Kazakh or Azerbaijani gas, Ukraine would be ready to facilitate its transport as long as the necessary logistical and contractual frameworks are in place.
Druzhba pipeline to close next January
However, with the Druzhba pipeline’s closure looming, Hungary may face oil supply challenges. Currently, Hungary can only import oil via the Adriatic pipeline from Croatia, apart from the Druzhba line. This raises concerns about the country’s energy security, as reliance on a single pipeline could leave it vulnerable to fluctuations and price hikes.
Zsolt Hernádi, CEO of MOL, Hungary’s state oil company, has long warned of the risks associated with cutting off Russian oil imports due to the war in Ukraine. He argued that relying solely on Croatia for oil supplies is not only economically damaging but also leaves Hungary exposed to potential manipulation by Croatia. MOL has previously voiced concerns that Croatia could exploit this situation by increasing transit fees for the Adriatic pipeline, something MOL already considers excessive.
UPDATE: Ukraine clarifies position
By Friday afternoon, Podolyak reversed his statement, contradicting his earlier claims: read more HERE.
The European Union remains incapable of undertaking a realistic assessment regarding the war in Ukraine, and “war psychosis is still rampant” in the bloc, Foreign Minister Péter Szijjártó said after a meeting with his EU counterparts in Brussels on Thursday.
Hungarian companies are discriminated in Ukraine, says Szijjártó
At a press conference, Szijjártó lamented that most member states thought that the war’s territorial expansion did not carry a risk of escalation, and that some of his counterparts had even said that allowing Ukraine to use Western weapons to strike targets in Russia was “a way of achieving peace”.
According to ministry statement, Szijjártó said that because of the extent to which “this goes against reality . we must conclude that this blind pro-war stance and pro-war psychosis will continue to hold sway here in Brussels in the coming months”.
He said several member states urged the EU to allocate a further more than 6 billion euros from the European Peace Facility towards weapons deliveries, adding that Hungary “will not contribute to freeing up a single euro cent as long as Hungarian companies are discriminated against in Ukraine” and measures endangering Hungary’s energy security were in effect.
Szijjártó said the EU’s foreign policy chief had tried to apply pressure in the interest of allowing the deployment of Western weapons against targets in Russia.
Photo: FB/Szijjártó
We have not and won’t supply weapons to Ukraine
“Hungary’s stance is clear,” the minister said. “We have not and won’t supply weapons to Ukraine, because we’re convinced that the more weapons there are in use in the war in Ukraine, the longer it will last.”
Szijjártó said there was also mounting pressure to expand and extend the EU’s training mission for Ukrainian soldiers, noting that Hungary was not participating in this, either.
“We’ve made it clear that if they want to expand either the territorial scope or function of this training mission, Hungary will not contribute to it,” he said.
He also warned against the “extremely dangerous” idea of continuing the training mission in Ukraine, saying this posed a “serious risk” of escalation. He said that if the EU wanted to extend the mission’s duration in its current form without expanding it elsewhere, Hungary would not block it, but would not support it, either.
Meanwhile, Szijjártó said several participants at the meeting had raised the subject of tightening sanctions, with some of them proposing that they be expanded to include the energy sector. He also said that “a significant number of member states . secretly and hypocritically” continued to by Russian energy.
Photo: Facebook/Szijjártó Péter
“I think it’s every country’s and every company’s own business if they buy energy in a way that doesn’t violate the sanctions,” Szijjártó said. “But then why lie? Why be hypocritical? Why not be open, honest and straightforward about it?”
Szijjártó started his press conference by saying that though the informal meeting of foreign ministers would be traditionally held in the country holding the EU’s rotating presidency, it had been moved to Brussels with the intent of “disciplining” Hungary for its pro-peace position. He added, however, that “this won’t work”, vowing that Hungary will continue to urge peace in Ukraine.
Hungarian foreign minister slams EU foreign policy chief’s ‘dangerous’ Middle East proposals
Foreign Minister Péter Szijjártó on Thursday criticised what he called “dangerous and unreasonable proposals” put forward by European Union foreign policy chief Josep Borrell concerning the situation in the Middle East. Speaking at a press conference after an informal meeting of EU foreign ministers in Brussels, Szijjártó said Borrell “has seemingly lost control” and was putting forward proposals “that are extremely dangerous for Europe”.
Szijjártó criticised a proposal for the EU to impose sanctions on two Israeli ministers.
“It’s an extremely dangerous and absolutely unreasonable proposal, because such a decision would raise major question marks in the Middle East, and would completely undermine the cooperation between the European Union and Israel,” Szijjártó said, according to a ministry statement.
He praised Israel for its agreement with the World Health Organization (WHO) on the launch of a polio vaccination campaign in Gaza.
“This step must be appreciated,” he said. “They wanted to adopt a joint position here today that would have criticised Israel in spite of this agreement, so we asked that it be amended.”
Szijjártó also welcomed Israel’s commitment to guaranteeing religious freedom on the Temple Mount and in the country’s holy places.
“Certain steps in the recent period have raised concern among certain Israeli politicians and certain Christian communities,” he said. “And in this respect I believe the Israeli foreign minister’s and prime minister’s public commitment to maintaining the freedom to practise religion is significant.”
EU-Türkiye cooperation in migration
Meanwhile, Szijjártó said Thursday’s meeting was also attended by Türkiye’s foreign minister, noting that there had not been such a high-level meeting between the EU and Türkiye in the last five years.
He underscored the importance of preserving the EU and Türkiye’s cooperation on migration, saying he had asked his Turkish counterpart “not to let themselves be talked out of keeping migration at bay just because they see an EU member state being made to pay tens and hundreds of thousands of forints for protecting its borders”.
Szijjártó said he and his Turkish counterpart did not hold bilateral talks this time because they could “do so at any time” and will talk on the sidelines of the UN General Assembly meeting next month.
The minister said Türkiye was “indispensable” when it came to responding to the challenges before the EU, whether it be energy security or migration.
On another subject, he said the deadly stabbing in Germany last weekend had demonstrated “just how dangerous and unreasonable the pressure Brussels is trying to put on Hungary is”.
“We don’t want a Solingen in Hungary, we don’t want stabbings in Hungary, we don’t want illegal migrants in Hungary, so it’s simply shocking and outrageous that while the number of crimes committed and the number of people killed by illegal migrants in Europe is rising, the European Union is punishing us because we protect ourselves and our border and don’t allow illegal immigrants into the country,” he said.
EU ‘idly watches’ Ukraine ‘playing with’ energy security?
Ukraine has threatened the energy security of Hungary and Slovakia by making Russian Lukoil‘s crude oil transit impossible and the European Commission has not taken any action, the foreign minister said on Thursday. Szijjártó told a press conference after a meeting with his EU counterparts in Brussels that his Ukrainian counterpart had also attended the consultations and talked much about the Russian attacks against his country’s energy grid.
“Hungary’s position is clear,” he said. “A country’s energy supply is a matter of national security. As a result, when a country threatens the security of another country’s energy supplies, then it also threatens that country’s national security interests.”
“And this is exactly what has happened in respect of Ukraine and Hungary. By making around a third of Hungarian oil imports from Russia practically impossible by legal means, Ukraine is undermining the security of Hungary’s energy supplies or at least subjects it to serious challenges,” he said.
He added that the same applied also in connection with Slovakia where Ukraine had blocked around 40-45 percent of Russian oil imports.
EU limiting energy security for Hungary and Slovakia?
“And I must say that the European Commission has shown its true colours, because either the European Union is so weak that it cannot protect two member states’ energy security against a non-member country, or it has created the whole situation itself and Kyiv had actually been instructed by Brussels to introduce measures that limit energy security for Hungary and Slovakia,” he said.
Whichever happens to be the case, “it is disappointing that the European Union is either so weak or it is trying to hide so boldly behind Kyiv to force Hungary and Slovakia to change their pro-peace position,” he said.
Szijjártó said that together with his Slovak counterpart they had expressed their disappointment in connection with the EC’s handling of the issue and noted that both countries were making considerable contributions to the security of Ukraine’s supplies.
“Some 42 percent of Ukraine’s electricity imports currently arrive in Ukraine through Hungary and Hungarian state companies have made significant investments in order to enable synchronised cooperation between European and Ukrainian systems,” he added.
“Without these measures, Ukraine’s electricity supplies would not be secured… And despite this we had to face Ukraine playing with the security of energy supplies for Hungary and for Slovakia,” he said.
Continual talks
Szijjártó said there were continual talks with Russian suppliers and the Ukrainian system operator about finding a legal solution to guarantee long term supplies.
“But let me tell you again, it should not be us having to deal with this task but either the Ukrainians should restore the original situation or the European Union should take action in this matter,” he added.
With the help of different types of temporary measures, supplies could be successfully secured in the short term and medium term, but in the case of energy only a long-term solution was acceptable, he said.
“As a result, we will certainly continue the talks and hope that agreements can be signed soon that will enable the long-term security of energy supplies,” he added.
Read also:
Hungarian man arrested for smuggling U.S. military devices to Russia – read more HERE
A Hungarian man has been arrested in San Francisco on suspicion of conspiring to illegally export 200 U.S. military radio communication devices to Russian government entities, according to the U.S. Attorney’s Office in Washington, D.C., as reported by 444.
On Monday, a 46-year-old man named Bence Horváth was detained in San Francisco. He is accused of “conspiring with others to illegally export U.S.-origin radio communications technology to Russian government end users without authorisation,” as reported by various news outlets.
The gravity of the case is highlighted by the fact that officials from five different agencies were involved in announcing the arrest. These include U.S. Attorney Matthew M. Graves, Assistant Attorney General for National Security Affairs Matthew Olsen, Special Agent in Charge of the New Orleans Field Office of Homeland Security Investigations, Eric DeLaune, Special Agent in Charge of the New Orleans Field Office of HSI, Darrin K. Jones, Special Agent in Charge of the Southeast Regional Office of the Defense Criminal Investigative Service, Trey McClish, and Special Agent in Charge of the Dallas Regional Office of the Department of Commerce’s Office of Export Controls.
Horváth and his associates are believed to have begun negotiations in January 2023 with a small U.S. radio distribution company. Their objective was to purchase and export U.S.-made military-grade radios and related accessories to Russia.
In the months that followed, Horváth successfully acquired 200 military-grade radios, which he intended to ship to Russia via a Latvian transport service. However, the attempt was thwarted when U.S. Customs and Border Protection seized the shipment, preventing the radios from reaching Russian users.
Horváth accused of smuggling military radios via international network
Photo: Pixabay
According to the prosecutor’s statement, Horváth was arrested on 23 August 2024, upon his arrival at San Francisco International Airport. Authorities allege that Horváth, along with others, managed a multinational procurement network that worked directly with various Russian government agencies. This network was involved in large-scale projects, such as constructing operational radio communications systems in Russia’s Kursk region near the Russian-Ukrainian border, as reported by 444.
Horváth is said to have personally arranged the purchase and smuggling of U.S.-origin radio communications technology to Russian government end-users, utilising a network of subsidiaries in Spain, Serbia, Hungary, and Latvia.
“The indictment alleges that the defendant attempted to purchase military-grade radios for Russian organisations using a multinational supply chain to evade law enforcement,” said Deputy Attorney General Olsen. “The Department of Justice remains committed to dismantling and prosecuting the criminal networks that continue to fuel Russian aggression abroad and threaten our collective security.” Further details of the investigation remain unknown.
Applicants for Hungary’s National Card will go through “the same migration and security screenings as applicants for any other residence permit,” the state secretary for government communications said on Facebook on Wednesday.
Zoltán Kovács responded to European concerns suggesting that the Hungarian programme could offer “easy access for Russian and Belarusian spies”, and dismissed suggestions of Hungary hosting such spies as “fiction”.
Kovács said the cards could be obtained for a stay between 90 days and two years, for employment purposes, adding that the applicant was required to have an employer and an actual position. Holders of the card need to reapply if they change their job, he added.
Photo: depositphotos.com
The state secretary also noted that the National Card programme had been in place “for quite some time”, yet, it had not received criticism from the EU. “If it was all right earlier, why are we getting attacked now, while the regulations and the practice have been unchanged?” he asked.
Unrealistic worries about Russian spies due to National Card?
Citing Eurostatfigures, Kovács said over 718,000 Russian citizens had been staying in the EU in January 2023, with fewer than one percent of that group in Hungary, adding that “the same ratio” applied to Belarusian nationals. In view of those figures “Brussels’ worries about Russian spies in Hungary” seem “a bit unrealistic”. He also added that “huge masses of Russians” lived in the Baltic states, which he said were “most critical of Hungary’s National Card system and the alleged risks around it”.
Read also:
Hungary’s National Card programme extension on Russians, Belarusians: letter to the EC sent – read more HERE
The US authorities have detained a Hungarian man on suspicion of engaging in illegal export activities to Russia, according to the US Department of Justice.
Bence Horváth, 46, a resident of Spain, was detained at San Francisco International Airport on Aug 23 as he entered the United States, the statement issued on Monday said, adding that he and his associates were suspected of criminally breaching the 2018 Export Control Reform Act.
The authorities said Horváth operated as part of an international intermediary and procurement network with direct contractual relations with Russian government institutions.
He and others operating in Spain, Serbia, Hungary, Latvia and other unnamed countries are suspected of procuring American technology and smuggling it to Russia.
Read also:
U.S. imposes sanctions on 2 Hungarian entities with Russian ties – read more HERE
Hungary’s Ganz-MaVag consortium made a generous offer to acquire 100% of the shares of the Spanish train manufacturer Talgo. However, from the start, the Spanish government opposed the deal, citing Hungarian Prime Minister Viktor Orbán’s pro-Russian policies. Eventually, Spain successfully prevented the transaction, leaving Hungary reliant on outdated, 20–30-year-old Western European train carriages.
Generous offer derailed by political concerns
Months ago, Ganz-MaVag submitted an official bid for Talgo’s shares, but even before the formal offer, rumours circulated that Spain would block the purchase due to concerns over Orbán’s close ties to Russia. Spanish authorities had made it clear that such a deal was not on the table.
The decision-making process was drawn out. The Foreign Investment Council, part of Spain’s Ministry of Economy, delayed the anticipated July decision until 27 August, when it was finally confirmed that the sale would not go through, as reported by Portfolio.
Spain’s economic ministry issued a statement explaining that the cabinet agreed to reject the foreign direct investment from Ganz-MaVag in Talgo due to national security and public order risks identified during the investigation. Talgo holds access to sensitive information, which heightened the concerns.
National security fears lead to final rejection
Back in March, Ganz-MaVag had placed a bid of EUR 619 million for Talgo, which was valued at EUR 590 million at the time—a notably generous offer. Despite this, Spanish Prime Minister Óscar Puente strongly opposed the sale, citing Hungary’s close ties with Russia, and vowed to block the deal.
Spain followed through on this promise, consistently extending deadlines to give other potential buyers time to make offers. Companies such as Switzerland’s Stadler Rail and the Czech Republic’s Škoda were considered. Meanwhile, the Spanish government also repeatedly requested additional documents from the Hungarian consortium, further stalling the process.
Hungary’s railway situation remains precarious. According to János Lázár, Hungary’s Minister of Transport and Construction, acquiring Talgo would have provided valuable knowledge for producing new, domestically-made train carriages. Instead, Hungary now faces a 4-year wait for new carriages and, as an interim solution, plans to purchase decommissioned 20–30-year-old Western European train cars.
Hungary has to prepare for serious attacks against its sovereign foreign policy in the coming years, Péter Szijjártó, the foreign minister, said at the Tranzit festival in Tihany, on Lake Balaton, on Saturday.
Protecting Hungary’s sovereignty is not a “question of political ideology”, but a “matter of life and death”, Szijjártó said.
He said Hungary’s insistence on protecting its sovereignty had become the “antithesis of the liberal mainstream” and pointed to the range of means the liberal mainstream had adopted to squeeze out any other way of thinking, including political, legal and economic tools, and most recently “physical destruction” as in the case of the assassination attempts against Slovak Prime Minister Robert Fico and the candidate for president of the United States Donald Trump.
Szijjártó said Hungary had been able to keep its foreign policy focused on serving the interests of the Hungarian nation in recent years, while preventing the validation of external interests in Hungary, but he warned that the country needed to be ready for attacks on its political, physical, energy and economic security in the coming years.
He pointed to the international media and financing for NGOs, as well as procedures launched by Brussels and, most recently, an attack on new rules concerning Hungary’s National Card scheme providing residency for non-EU nationals. He noted that just 7,000 Russian nationals were residing in Hungary, while 20 times that number were in the Baltic states and the total for the whole EU stood over 1 million.
Szijjártó said the recently established Patriots for Europe group in the European Parliament could act as a “line of defence” for Hungary’s political security.
In spite of the West’s pressure on Hungary to deliver weapons to Ukraine and train troops, the country has become the “last obstacle for wartime psychosis”, he said, adding that Hungary’s pro-peace stand would come under “extraordinary pressure” in September and October.
Szijjártó called out other countries’ “hypocrisy” for finding ways to buy Russian energy on the sly, while treating energy policy as a matter of ideology rather than physical reality.
He said the European Commission’s rejection of Hungary and Slovakia’s request to take action against Ukraine for halting transit deliveries of Russian crude from Lukoil was “proof” that Brussels had instructed Ukraine’s government to take the step in the first place.
He said a long-term solution that would ensure the continued deliveries of the Russian crude in the long term was “very close”.
Addressing the EU’s reaction to the destruction of the Nord Stream pipeline, Szijjártó said that, if a state had been involved, it should be treated as “state-sponsored terrorism” and was deserving of a “proportionate response”.
Touching on economic security, he said Hungary was “open and honest” about what other countries tried to “do in secret”, adding that attempts to isolate the economies of the West from those of the East were a “total failure”.
He urged Hungary’s “Polish brothers” to lay off the criticism when the country’s oil company was still buying Russian crude, via circuitous routes, lifting bilateral trade between the two countries to 6 billion euros last year.
The European Commission’s lack of action on the matter of Ukraine’s stoppage of transit deliveries of Russian crude from Lukoil bound for Hungary and Slovakia suggests Brussels instructed Kyiv to take the step, the foreign minister said on Saturday.
EU not to help Hungary and Slovakia with Lukoil problems
“I think the fact that the EC has declared that it is unwilling to help with regard to Hungary and Slovakia’s secure energy supply supports the assumption that Brussels instructed Kyiv to create a problem for the energy supply of Hungary and Slovakia,” Péter Szijjártó said at an event in Tihany, on Lake Balaton, after the EC said it would not mediate for Budapest and Bratislava.
“Even though Brussels’ self-destructive policies have substantially weakened the European Union in recent years, it should not be so weak that it cannot protect the interests of two member states from the lark of a candidate country,” he added.
Szijjártó said a solution to ensuring deliveries of Russian crude to Hungary and Slovakia was “very close” and an announcement would be made when the negotiations finished and the papers were signed.
He added that the EC’s failure to act on the matter was “shameful” and showed the EU executive’s “true colours”.
The U.S. has placed sanctions on two Hungarian entities, as announced by U.S. Ambassador to Hungary, David Pressman, on the social media platform X.
Hungarian entities sanctioned by U.S.
U.S. Ambassador to Hungary, David Pressman, on the left. Photo: FB/US Embassy
Pressman informed Hungary’s Ministry of Foreign Affairs on 23 August about the decision. One of the targeted entities had been collaborating with the Russian energy sector and was involved in the planned construction of the Paks II nuclear power plant. The other entity manufactured weapons for the Russian military, 24.hu writes.
“We remain deeply concerned about the Hungarian government’s choice to strengthen its ties with the Kremlin, which continues to leave Hungary dependent on Russian energy,”
Pressman added.
According to Telex, the weapons manufacturer in question is Mátrix Metál Group Ltd., which is currently undergoing liquidation. This company had been supplying products to a Russian firm called Exiton, which were used in the production of Sukhoi fighter jets. Mátrix Metál is registered in an apartment building on Korányi Sándor Street in Budapest’s 8th district, and it is run by a Latvian national, Vladimirs Boreckis.
Met today with Hungarian Foreign Ministry officials to notify them that the United States is imposing sanctions on a range of targets, including on two entities in Hungary, one involved in bolstering Russia’s energy sector (and seeking to work on Paks II) and the other supplying… pic.twitter.com/PDWYLkNKpD
Russia uses Western technology in military production
US authorities have grown increasingly concerned about Russia’s military industry, particularly companies producing fighter jets, using Western technology in aircraft deployed in Ukraine. A Radio Free Europe investigation from May revealed that electronic components for Sukhoi jets were being supplied to Russia from the EU,
including from Cyprus and Hungary.
On 23 August, shortly after Ambassador Pressman’s statement, the U.S. State Department issued an official release announcing additional sanctions. These included a Hungarian-based branch of a Russian company.
The sanctioned Russian firm, Меzsregionstroj (referred to as MezhRegionStroj in Hungary), is a construction company involved in Russia’s Vostok project. This massive oil infrastructure endeavour aims to extract and transport oil from the Arctic region, with a goal of producing up to 100 million tons of crude annually, according to the U.S. State Department. The US government has placed sanctions on the Russian firm and its numerous subsidiaries.
Concerning a decision to expand the National Card programme to include Russians and Belarusians wishing to work in Hungary, Gergely Gulyás, the Minister of the Prime Minister’s Office said on a yesterday press conference that the matter did not concern the European Commission, but it would still be briefed on it.
No work permit needed for Russians, Belarusians in Hungary
He said there are 6,000 Russians working in Hungary and 300,000 in Germany, adding that “talking about national security risks is reminiscent of bad times.” He said objections to the programme were of a political nature, arguing that there were no differences in national security screenings when it came to the National Card programme, and all it meant was that those who qualified for the programme did not have to apply for a work permit.
Putin and Orbán in July in Moscow. Photo: FB/Orbán
As regards a lawsuit launched by Hungarian universities against the European Commissionover the decision to exclude them from the Erasmus programme, Gulyás said Hungary has been waiting for a reply from the EU in the matter for nine months, insisting that it “could be settled in 10 minutes”.
Asked how much money the EU was withholding from Hungary citing concerns over the state of the rule of law and corruption, Gulyás said Hungary now had access to 13 billion euros from the 21 billion euro budget, and the government was hopeful that the entire sum would become accessible.
Health restrictions?
Asked about the mpox outbreak, he said Hungary has a representation at the World Health Organisation, and the health authority is monitoring the situation to see if it is necessary to take any steps in the matter in Hungary, but so far there was no need to introduce any restrictions.
Photo: FB/Jahn Ferenc Hospital
Asked about reducing the difference between the minimum and the average wage, Gulyás said it was up to the government to make that decision, but “it would be best if employers and employees reached an agreement.” He said the government wanted a longer-term, three-year agreement running until 2027, as this would open the door to a “significant and radical minimum wage increase”, or possibly merging or narrowing the gap between the basic minimum wage and the minimum wage for skilled workers.
Crude oil deal
Asked about MOL taking over the transit of crude oil at the border between Russia and Ukraine, he said the solution would add about “a dollar and a half” per barrel to the price, but the government did not want consumer prices to rise.
In response to another question, he said food price inflation had gone down “radically”, and “all signs are pointing to the annual inflation rate staying below 4 percent.”
Meanwhile, he said that if former US president Donald Trump did not win the presidential election in November, “then as far as the government is concerned, we’ll be living under a plan B”, arguing that the US Democratic administration had made decisions that had prolonged the war in Ukraine.
Stressing that Hungary respected the decision of the American electorate, he said the government’s “plan A” would be a US administration that was “friendlier to Hungary”. He said Trump had promised to bring an end to the Russia-Ukraine war, “which would be good for both the Hungarian and the global economy”.
Gulyás said that if the US wanted peace, it was strong enough to achieve it.
Transcarpathian Hungarians evicted in Hungary
On another subject, he said the government has scrapped state housing subsidies for Ukrainian refugees who did not flee to Hungary from the war zone. He said only a small portion of them were ethnic Hungarians from western Ukraine’s Transcarpathia region, and the measure was in line with the steps taken by Czechia, Poland and Romania.
He said the state had supported the housing of some 4,000 refugees who had not taken on a job, adding that the government had reached out to the Hungarian Charity Service of the Order of Malta to manage any difficulties that will arise as a result of the decision.
Meanwhile, Gulyás said that if Hungary complied with the recent ruling by the Court of Justice of the European Union in connection with Hungary’s border protection policy, “effective border protection would cease to exist.” He added, at the same time, that Hungary aimed to reach an agreement with the European Commission on complying with the ruling as quickly as possible so that it could limit the fine it has to pay, adding that the EC will be ready to negotiate starting next month.
On another subject, he said Hungary’s debt to China reached 2.5 billion euros, which he said was “not particularly significant”.
He said Chinese police officers were already conducting patrols in Hungary but were not allowed to take action on their own.
Read also:
Orbán cabinet promises wage hike amidst labour shortage crisis in Hungary’s education – read more HERE
The European Commission and certain member states are “whipping up emotions” on the matter of Hungary’s National Card programme, the EU affairs minister said on Facebook on Wednesday.
János Bóka also posted a letter signed by Interior Minister Sándor Pintér, written to EU Home Affairs Commissioner Ylva Johansson who has earlier voiced concerns about extending the card programme to include Russians and Belarusians wishing to work in Hungary.
Bóka said in the post that applications for the card were tied to the same migration and security screening processes as other residence permits.
The card is issued only in consideration of the relevant EU guidelines and after an assessment of security risks, and the EU had so far not objected to the practice, he said.
Hungary is hosting only a fraction of Russian and Belarusian citizens currently staying in the EU, and the country issues a fraction of EU residence permits for Russian and Belarusian citizens, he said.
Pintér said in the letter that Hungary continued to place great emphasis on the protection of its national security and the security of the Schengen area as a whole.
Read also:
Security risk for Schengen area? Hungary’s National Card programme under fire but foreign minister dismissesconcerns
Foreign Minister Péter Szijjártó has stated that including Russian and Belarusian citizens in Hungary’s National Card programme does not pose a security risk to the Schengen area. He emphasised that entry and residency still require thorough background checks.
Security risk?
According to Péter Szijjártó, including Russian and Belarusian citizens in Hungary’s National Card programme does not pose a security risk to the Schengen area. Photo: depositphotos.com
Szijjártó criticised Northern European and Baltic politicians for what he describes as a campaign of misinformation regarding the National Card programme, which they claim is unsafe and could provide a loophole for Russian spies.
Non-EU citizens can work in Hungary under various permits, typically requiring either a residence permit or a National Card, 444.hu writes, based on MTI. While Ukrainian and Serbian guest workers have used the National Card previously, since 8 July, the card has been extended to applicants from eight countries, including Russia and Belarus.
National Card programme extension faces criticism
This extension has faced criticism, with experts like András Rácz raising concerns about potential national security risks, arguing that it could allow unchecked access to the entire Schengen area for Russians. Manfred Weber, President of the European People’s Party, also warned of serious risks associated with this programme extension.
The Baltic states have expressed their concerns, and the European Commissioner for Home Affairs has requested an explanation from Hungarian Interior Minister Sándor Pintér on how the Hungarian government will prevent Russian spies from entering the country.
