Hungary helps arm Ukraine despite anti-Kyiv rhetoric

While the Hungarian government continues to portray Ukraine as a threat, companies connected to Hungary’s expanding defence sector are building increasingly close links with firms supplying the Ukrainian military.

Hungarian Prime Minister Viktor Orbán recently spoke at an event announcing a series of partnerships between 4iG Space and Defence Technologies – the defence subsidiary of Hungarian technology group 4iG – and several international arms manufacturers. The agreements involve Turkey’s Nurol Makina and U.S. arms manufacturer Lockheed Martin, as well as the Prague-based Czechoslovak Group (CSG) and its subsidiary Tatra Trucks.

Under the deal, Tatra Trucks acquired a 37% stake in Rába Nyrt., one of the last remaining Hungarian-owned defence manufacturers.

“The cooperation between the Czech Tatra Trucks and the Hungarian 4iG, which owns Rába, is important in itself,” Orbán said, describing the deal as part of a broader “geopolitical strategy”.

It was an honor to celebrate today the new partnership between 4iG/Rába and Tatra Trucks – an important step enabling Hungary to acquire @LockheedMartin High Mobility Artillery Rocket Systems (HIMARS). The purchase of this critical defense asset, used by the U.S. and its major… pic.twitter.com/id2GdlTZG4
— Chargé d'Affaires Caroline Savage (@USAmbHungary) March 2, 2026

However, the investment further reduces state ownership in the country’s defence sector.

The Hungarian Defence Ministry last year privatised most of the remaining state-owned defence industry assets. The process began with the sale of shares in the Czech aircraft manufacturer Aero Vodochody to investors linked to Hungary’s MOL group and to a company associated with businessman Árpád Habony.

This was followed by a large-scale privatisation in which 4iG acquired a majority stake in the state holding company N7 Holding. The portfolio included several defence-related companies such as the firearms manufacturer Arzenál Kft. and the aircraft maintenance company Aeroplex Kft., as well as Hungary’s shares in joint ventures with major foreign defence manufacturers including Rheinmetall, Colt CZ and Airbus.

Initially the state retained ownership of Rába, but within months 4iG became the majority shareholder in the historic truck manufacturer. The latest deal now transfers a significant portion of that ownership to CSG.

As a result of the privatisation process, few major defence manufacturers remain fully Hungarian-owned. The state no longer owns a traditional weapons factory, retaining mainly companies providing technical support and maintenance services.

Through its involvement in 4iG, the influence of Rheinmetall in Hungary’s defence sector has also expanded. The German defence giant controls more than a quarter of 4iG’s shares.

This level of foreign exposure in the defence industry is unusual in the region. Countries such as Romania, Slovakia and Bulgaria have largely retained their major weapons manufacturers in state ownership.

At the same time, the foreign companies now entering Hungary’s defence sector have extensive links to Ukraine’s war effort.

The Prague-based Czechoslovak Group has become one of the Ukrainian army’s key suppliers. According to the company, Ukraine was its largest market in 2025, with more than a quarter of its revenues coming from Ukrainian military orders.

In 2024 the company signed a cooperation agreement with the Ukrainian arms manufacturer Ukrainska Bronetechnika to produce artillery ammunition partly in the Czech Republic and partly in Ukraine.

CSG said the move was intended to strengthen cooperation with Ukrainian companies and support the country in producing artillery ammunition on its own territory, while increasing production for the Ukrainian armed forces and lowering costs.

In October last year the company launched production in Ukraine, becoming one of the first Western arms manufacturers to begin manufacturing there. During the first year it planned to supply 100,000 units of 155-millimetre artillery shells.

Ukraine switched to the NATO-standard 155-millimetre calibre during the war as its artillery systems were largely replaced with Western models.

Rheinmetall – which also has strong ties to Hungary’s defence sector through 4iG, is likewise supplying ammunition to Ukraine and building its own production facilities there.

CSG subsidiary Excalibur Army has also played a major role in supplying equipment to Ukraine. The company helped refurbish Ukrainian T-72 tanks in 2022 and 2023 under a U.S.-Dutch programme, and has supplied missile systems and artillery equipment to Ukrainian forces.

Meanwhile Tatra Trucks, another CSG subsidiary involved in the Hungarian deal, is also a supplier to the Ukrainian army. Even before the war the company delivered Tatra Force military vehicles to Ukraine.

These trucks serve as platforms for several Ukrainian weapon systems, including the Neptune anti-ship missile that was used by Ukrainian forces to sink the Russian Black Sea Fleet flagship Moskva.

The company’s 2025 report listed Ukraine among its most important export markets.

The broader partnership around 4iG also includes Turkey’s Nurol Makina and Lockheed Martin, both of which have supplied equipment to Ukraine. Nurol Teknoloji indicated in 2023 that it had delivered ballistic armour plates and protective equipment to the country, while Lockheed Martin manufactures components for the Javelin and HIMARS missile systems used by Ukrainian forces, as well as Patriot missile interceptors.

The full article in Hungarian by EUalive’s partner atlatszo.hu can be found here.

Caption: Hungarian Prime Minister Viktor Orbán recently spoke at an event announcing a series of partnerships between 4iG Space and Defence Technologies – the defence subsidiary of Hungarian technology group 4iG – and several international arms manufacturers. The agreements involve Turkey’s Nurol Makina and U.S. arms manufacturer Lockheed Martin, as well as the Prague-based Czechoslovak Group (CSG) and its subsidiary Tatra Trucks. [U.S. Embassy in Hungary on X]