In response to the criticism, 4iG told Direkt36 that the Hungarian government incurs no investment costs by entrusting the construction of the satellite system to a private company. Thus, the company said, once the entire infrastructure is up and running, the state will only have to pay for the services provided by the satellite system. They added that if 4iG fails to deliver, the international financial institution providing the bank guarantee will repay the Hungarian state\u2019s money, including interest.<\/p>\n
Bertalan Havasi, Fidesz\u2019s press secretary, wrote in response to our questions that the Orb\u00e1n government\u2019s decisions \u201care documented and traceable in this matter as well,\u201d and therefore suggested that we contact the current government. The Tisza government is currently reviewing the documents mentioned by Havasi; this process could take several more weeks.<\/p>\n
Ferencz wrote to Direkt36 that it would be important for Hungary to \u201cpossess sovereign satellite capabilities kept under strict state control.\u201d She added that in achieving this, \u201cwe must take into account our country\u2019s alliances\u201d and strive to ensure that players in the Hungarian space sector can participate in \u201cindustrial and operational tasks.\u201d<\/p>\n
I. Big money, influential players
\n<\/strong><\/h3>\n![\"Ferencz](\"https:\/\/direkt36-hu.b-cdn.net\/wp-content\/uploads\/2026\/09\/Orban_Ferencz-800x533.jpg\")
Orsolya Ferencz next to Viktor Orb\u00e1n \u2013 Photo: Fidesz \/ Facebook<\/p><\/div>\n
\u201cI would very much like it to happen as soon as possible,\u201d Orsolya Ferencz replied in March 2019 in the H\u00edr TV studio when asked when Hungary might have its own satellite. The reasoning behind Ferencz\u2019s statement was that by that time, the government, in collaboration with professional workshops, was already well underway with the satellite program.<\/p>\n
The Fidesz politician\u2014who is both an electrical engineer and a space researcher\u2014was appointed by Foreign Minister P\u00e9ter Szijj\u00e1rt\u00f3 as the ministerial commissioner responsible for space research back in October 2018. Ferencz then began developing the national space strategy with his team at the Ministry of Foreign Affairs and Trade (KKM). A key part of the strategy was sending another Hungarian astronaut into space\u2014which came to fruition in the summer of 2025 with Tibor Kapu\u2014as well as launching an independent satellite program.<\/p>\n
Shortly after discussions began regarding the state-funded satellite development project\u2014expected to cost billions\u2014several business circles with close ties to the government appeared around the project.<\/p>\n
Among them was Istv\u00e1n S\u00e1rhegyi, whose family had strong ties to Fidesz. His father, Zolt\u00e1n S\u00e1rhegyi, a lawyer, served as a Fidesz delegate on the National Election Commission. His mother, Beatrix B\u00e1rtfai, a lawyer, was involved in the founding of \u00c1rp\u00e1d Habony\u2019s media companies. The family\u2019s law firm\u2014S\u00e1rhegyi & Associates\u2014received contracts worth hundreds of millions from various government agencies and ministries during the Orb\u00e1n administration.<\/p>\n
Istv\u00e1n S\u00e1rhegyi himself also cultivated such connections, for example with the former prime minister\u2019s son, G\u00e1sp\u00e1r Orb\u00e1n. Both were key members of the student organization known as the Law Students\u2019 Self-Education Organization (J\u00d6SZ), which was designated as a specialized college in 2019. According to an article by \u00c1tl\u00e1tsz\u00f3<\/a>, Orb\u00e1n was one of the founders of J\u00d6SZ, while S\u00e1rhegyi served as its director.<\/p>\nAfter his college years, S\u00e1rhegyi turned his attention to the space industry and space law\u2014a field less well-known in Hungary\u2014after completing a course at the International Space University in Ireland in 2017.<\/p>\n
\u201cThat\u2019s where I got hooked on the sector,\u201d<\/p><\/blockquote>\n
S\u00e1rhegyi told Direkt36, adding that it was then that he realized that as spaceflight became more affordable, significant opportunities were opening up even for profit-driven private companies.<\/p>\n
Several people took notice of S\u00e1rhegyi\u2019s activities. \u201cYou could tell he wanted a playground of his own where he could be in charge. And the space industry seemed like just that,\u201d said a source familiar with the Hungarian space sector.<\/p>\n
Thanks to his ambitions and network of contacts, S\u00e1rhegyi quickly made his presence felt in the satellite project\u2019s orbit. He said that the Ministry of Foreign Affairs and Trade (KKM) hired him as a legal advisor in 2018, which is how he came to work with Orsolya Ferencz, who was working on the space strategy at the time. Although his parents\u2019 law firm also did work for the KKM, S\u00e1rhegyi claimed that his success in the space sector was due to his own professional work and had nothing to do with his parents\u2019 contract.<\/p>\n
The other business circle was 4iG, led by Gell\u00e9rt J\u00e1szai, which was expanding at a breakneck pace at the time and became one of the country\u2019s largest companies in just a few years. Starting in 2018, it became a major player in the IT sector, and after 2020, it began expanding into the telecommunications market. In this process, in addition to state subsidies and assistance from regulatory authorities, Orb\u00e1n\u2019s special attention also played a key role. Direkt36 previously revealed that there were instances when the prime minister personally negotiated one of 4iG\u2019s telecommunications-related deals, which was, in theory, a private matter<\/a>.<\/p>\nSoon, the business circles of J\u00e1szai and S\u00e1rhegyi merged. In August 2020, CarpathiaSat Zrt. was founded with the goal of launching and operating Hungary\u2019s first satellite into Earth orbit. The Hungarian government established this company jointly with 4iG and one of S\u00e1rhegyi\u2019s companies (New Space Industries Zrt.).<\/p>\n
II. Military and civilian objectives
\n<\/strong><\/h3>\n![\"S\u00e1rhegyi](\"https:\/\/direkt36-hu.b-cdn.net\/wp-content\/uploads\/2026\/09\/sarhegyi-800x593.jpg\")
Istv\u00e1n (second from the left) joined the business \u2013 Photo: 4iG<\/p><\/div>\n
Influential business figures had thus emerged around the satellite program, but at that point it still appeared that government agencies would essentially control the project. At the time, they were focused on technical issues, such as what kind of technical capabilities the country\u2019s satellite would need.<\/p>\n
The project was coordinated by a team from the Ministry of Foreign Affairs led by Orsolya Ferencz. \u201cFor example, they also incorporated the needs of the Ministry of Defense,\u201d said a source familiar with the project, noting that military considerations were taken into account during the planning process. In addition to the Ministry of Defense, the National Media and Infocommunications Authority (NMHH) was also involved in the work. The NMHH was needed, among other reasons, because this authority would be responsible for conducting international negotiations regarding the satellite\u2019s orbital position.<\/p>\n
This is how the concept of a dual-use Hungarian satellite system took shape. This meant that, in addition to civilian uses\u2014such as broadcasting and communications\u2014the satellite was also intended for military purposes. In doing so, Hungary would have cooperated with its NATO partners, meaning the satellite would have contributed to the development of defense capabilities within NATO.<\/p>\n
Brigadier General Imre Porkol\u00e1b, who had worked closely with NATO during his career, played a significant role in formulating these objectives. He was the first Hungarian soldier to graduate from the Royal Military Academy in the United Kingdom, where G\u00e1sp\u00e1r Orb\u00e1n later studied as well. During his military career, he served in Iraq and Afghanistan, and later worked as a NATO representative at the U.S. Department of Defense, the Pentagon. Starting in 2022, Porkol\u00e1b served as the ministerial commissioner responsible for defense innovation within the Ministry of Defense. (Porkol\u00e1b confirmed to Direkt36 that he did indeed participate in the technical coordination of the satellite program on behalf of the Ministry of Defense.)<\/p>\n
The government envisioned not a single satellite but a system consisting of multiple satellites. According to the plans, the core of the system would be a larger satellite orbiting in what is known as a geostationary orbit. Only a limited number of satellites can occupy this specific orbit, which is in sync with the Earth, so that when viewed from the Earth\u2019s surface, it always appears at the same point in the sky\u2014that is, it continuously covers a fixed area. This large satellite would be assisted by smaller satellites in lower orbits that are linked to it and orbit faster relative to the Earth.<\/p>\n
Since the Hungarian government had no experience with building or operating satellites, the concept\u2019s developers also considered whom to entrust with carrying out the project. This led to the idea of acquiring SpaceCom, an Israeli satellite operator. In June 2021, 4iG announced that, together with the partially state-owned CarpathiaSat, it would acquire a majority stake in the Israeli company.<\/p>\n
This seemed logical, as the Hungarian government already had a relationship with SpaceCom. Back in the 1980s, the United Nations telecommunications agency allocated to Hungary a specific orbital slot in space where it could operate its own satellite. Since the country had neither the funds nor the technology for this at the time, the Hungarian government leased the orbital slot to SpaceCom in 2004. The company subsequently began operating its satellite, named AMOS 3, on that frequency band.<\/p>\n
\u201cThat way, we would have acquired the necessary knowledge and capabilities,\u201d said a source familiar with the concept, explaining what was behind the attempted acquisition. However, the acquisition of SpaceCom ultimately fell through. For national security reasons, the Israeli government did not approve a foreign investor acquiring a controlling stake in the satellite company, which also serves the Israeli military.<\/p>\n
\u201cIn the end, we only managed to buy 20 percent of SpaceCom, which is good for nothing, but we spent a fortune on it,\u201d<\/p><\/blockquote>\n
the source said of the failed attempt.<\/p>\n
At the same time, government agencies working on the concept were also considering who should manufacture the necessary satellites. According to sources familiar with the matter, the names of leading global players such as the European company Airbus and Thales came up during these discussions. The vision for the manufacturing process was that both the Hungarian scientific community and domestic companies would benefit from it. \u201cJust as the car factories here have Hungarian suppliers,\u201d said one source, explaining how smaller domestic companies could be involved in the project.<\/p>\n
This was the concept that Orsolya Ferencz presented to Viktor Orb\u00e1n in the fall of 2023. The prime minister, however, had entirely different ideas.<\/p>\n
\n\nIII. Orb\u00e1n steps in
\n<\/strong><\/h3>\n![\"\"](\"https:\/\/direkt36-hu.b-cdn.net\/wp-content\/uploads\/2026\/09\/remred-800x600.jpeg\")
Remred’s factory in Martonv\u00e1s\u00e1r \u2013 Photo: Andr\u00e1s Szab\u00f3<\/p><\/div>\n
By early 2024, it had become clear to the foreign affairs team working on the satellite program that control had slipped from their hands. In January of that year, the Orb\u00e1n government decided to transfer oversight of space industry developments from the Ministry of Foreign Affairs and Trade (KKM) to the Ministry of National Economy, led by M\u00e1rton Nagy (NGM).<\/p>\n
This opened up even more opportunities for 4iG.<\/p>\n
\u201cThe goal was to have a ministry oversee the sector that would carry out 4iG\u2019s requests,\u201d said a source familiar with the situation. This would not have been the case if the project had remained with Ferencz, as she opposed handing over the satellite investment to private hands. (Ferencz stated that oversight of space industry developments was transferred from her to the NGM despite the fact that the Ministry of National Economy lacked the necessary technical expertise.)<\/p>\n
Since Ferencz repeatedly raised his technical and national security concerns regarding 4iG\u2019s role with government leaders\u2014according to sources familiar with the matter\u2014the politician gradually became isolated. (Although it was suggested in November 2023 that she might be Fidesz\u2019s candidate for mayor of Budapest, this ultimately did not happen. Despite Tibor Kapu\u2019s spaceflight being a success story, Ferencz appeared only in 162nd place on the Fidesz list for the 2026 parliamentary election.)<\/p>\n
After the sector was transferred to the Ministry of National Economy (NGM), 4iG also stepped up its activities. A few weeks later, in February 2024, they announced the creation of a new subsidiary, 4iG S&T (4iG Space and Technology Zrt.), which would consolidate the group\u2019s space industry and satellite development efforts. At the same time, they announced that Istv\u00e1n S\u00e1rhegyi would be appointed to lead the new company.<\/p>\n
By this time, an even closer partnership had developed between 4iG\u2014led by J\u00e1szai, who saw opportunities in the space industry\u2014and S\u00e1rhegyi.<\/p>\n
\u201cThe company Remred was the key to bringing them together,\u201d<\/p><\/blockquote>\n
said a source familiar with the Hungarian space industry. Remred was, in fact, intended to play a pivotal role in the ambitious space industry plans.<\/p>\n
Remred originally belonged to the state-owned Energy Research Center (EK). The company\u2019s significance stemmed from the fact that it held the manufacturing rights to the Pille radiation detector. The Pille was one of the most successful inventions in Hungarian space research, and it was even taken into space by Bertalan Farkas, the first Hungarian astronaut, in 1980. The device is still in use today on the International Space Station.<\/p>\n
S\u00e1rhegyi also recognized the value inherent in Remred and acquired the company in 2021. In 2022, he also announced that he would establish a satellite manufacturing plant at Remred\u2019s base in Martonv\u00e1s\u00e1r, Fej\u00e9r County. At that time, he stated that the plant would manufacture small satellites weighing between 100 and 400 kilograms, along with the systems to operate them.<\/p>\n
In the meantime, J\u00e1szai also took notice of Remred. Since 4iG lacked significant experience in space technology, the company owned by S\u00e1rhegyi was a perfect fit for them. In February 2024\u2014along with the establishment of its space industry subsidiary\u20144iG announced that, through a capital increase, it would acquire a 45 percent stake in Remred and would also support the satellite manufacturing plans in Martonv\u00e1s\u00e1r. Building on this, 4iG began emphasizing that, through Remred, it had gained access to significant aerospace engineering expertise and an international network of contacts.<\/p>\n
Following these developments, the 4iG team led by J\u00e1szai and S\u00e1rhegyi set out, among other things, to negotiate with the Ministry of National Economy regarding what services the satellite system they planned to build would provide to the Hungarian government in the future.<\/p>\n
According to a source familiar with the operations of the Tisza government, the Ministry of National Economy (NGM) signed three contracts with 4iG for telecommunications and Earth observation services. The first contract was signed back in 2024. The two additional contracts supplementing this one were signed shortly before the parliamentary elections in April of this year. The total value of the contracts is 2.36 billion euros (approximately 850 billion forints). The Hungarian government has committed to paying this amount over the next decade and a half in exchange for 4iG\u2019s satellite services. (Telex previously reported<\/a> on these figures in a detailed article. )<\/p>\nAccording to the source, the current government considers the contracts to be favorable to 4iG. It is difficult to terminate them, but if the government were to attempt to do so unilaterally, the source says it would have to pay the entire fee to 4iG in a lump sum. Furthermore, under the terms of the contracts, the state is required to make payments even during the preparatory phase of the satellite project. In 2025, for example, the Hungarian government paid 4iG an advance of 125.188 million euros (approximately 49 billion forints). (4iG stated that it bears the full risk of the project and that, in its view, the advance payment is lower than the market standard. It added that the government would only be required to pay the remaining full amount if the contract were terminated without legal grounds.)<\/p>\n
According to a source familiar with the current government\u2019s operations, other parts of the contracts also raise questions. This is because 4iG has committed to providing services to the government until the satellite system is completed. It plans to do so by purchasing the necessary data from a third party. According to the source, it is unclear why this is beneficial to the government, since the Hungarian government could contract directly with this third party\u2014likely at a lower cost\u2014without going through 4iG. (4iG stated that this obligation to the Hungarian government stems not from the satellite program but from a separate agreement.)<\/p>\n
After 4iG signed a contract with the Hungarian government, it began building its system, dubbed HUSAT (Hungarian Satellite). In April of this year, before the parliamentary elections, it reached an agreement with the American company Northrop Grumman to manufacture the larger satellite. The smaller satellites, meanwhile, are scheduled to be manufactured at the Martonv\u00e1s\u00e1r plant. Construction of this facility began in the spring of 2024; the project is set to be completed this December, after which trial operations can begin.<\/p>\n
Domestic space industry players and participants in the state satellite project have reacted to these plans with skepticism. \u201cJust because someone knows how to fold a paper boat doesn\u2019t mean they\u2019ll be able to build a submarine,\u201d said one source, who believes that Remred\u2014which is capable of manufacturing radiation detectors\u2014lacks the necessary experience to produce the far more complex satellites.<\/p>\n
In response, S\u00e1rhegyi told Direkt36 that manufacturing and development tasks are carried out jointly with their international partners to minimize technological risks. At the same time, they are also developing their own technology. Thus, the satellites manufactured at the Martonv\u00e1s\u00e1r plant will incorporate both in-house and international technologies, he added.<\/p>\n
The satellite system has not yet been completed. Plans regarding this are greatly influenced by the fact that Tisza\u2019s election victory has created a new situation for 4iG. The new government announced in August that it would review the contracts between the Hungarian state and 4iG, including agreements related to satellite development. A decision on further cooperation with 4iG will be made thereafter.<\/p>\n
Orsolya Ferencz next to Viktor Orb\u00e1n \u2013 Photo: Fidesz \/ Facebook<\/p><\/div>\n
\u201cI would very much like it to happen as soon as possible,\u201d Orsolya Ferencz replied in March 2019 in the H\u00edr TV studio when asked when Hungary might have its own satellite. The reasoning behind Ferencz\u2019s statement was that by that time, the government, in collaboration with professional workshops, was already well underway with the satellite program.<\/p>\n
The Fidesz politician\u2014who is both an electrical engineer and a space researcher\u2014was appointed by Foreign Minister P\u00e9ter Szijj\u00e1rt\u00f3 as the ministerial commissioner responsible for space research back in October 2018. Ferencz then began developing the national space strategy with his team at the Ministry of Foreign Affairs and Trade (KKM). A key part of the strategy was sending another Hungarian astronaut into space\u2014which came to fruition in the summer of 2025 with Tibor Kapu\u2014as well as launching an independent satellite program.<\/p>\n
Shortly after discussions began regarding the state-funded satellite development project\u2014expected to cost billions\u2014several business circles with close ties to the government appeared around the project.<\/p>\n
Among them was Istv\u00e1n S\u00e1rhegyi, whose family had strong ties to Fidesz. His father, Zolt\u00e1n S\u00e1rhegyi, a lawyer, served as a Fidesz delegate on the National Election Commission. His mother, Beatrix B\u00e1rtfai, a lawyer, was involved in the founding of \u00c1rp\u00e1d Habony\u2019s media companies. The family\u2019s law firm\u2014S\u00e1rhegyi & Associates\u2014received contracts worth hundreds of millions from various government agencies and ministries during the Orb\u00e1n administration.<\/p>\n
Istv\u00e1n S\u00e1rhegyi himself also cultivated such connections, for example with the former prime minister\u2019s son, G\u00e1sp\u00e1r Orb\u00e1n. Both were key members of the student organization known as the Law Students\u2019 Self-Education Organization (J\u00d6SZ), which was designated as a specialized college in 2019. According to an article by \u00c1tl\u00e1tsz\u00f3<\/a>, Orb\u00e1n was one of the founders of J\u00d6SZ, while S\u00e1rhegyi served as its director.<\/p>\n After his college years, S\u00e1rhegyi turned his attention to the space industry and space law\u2014a field less well-known in Hungary\u2014after completing a course at the International Space University in Ireland in 2017.<\/p>\n \u201cThat\u2019s where I got hooked on the sector,\u201d<\/p><\/blockquote>\n S\u00e1rhegyi told Direkt36, adding that it was then that he realized that as spaceflight became more affordable, significant opportunities were opening up even for profit-driven private companies.<\/p>\n Several people took notice of S\u00e1rhegyi\u2019s activities. \u201cYou could tell he wanted a playground of his own where he could be in charge. And the space industry seemed like just that,\u201d said a source familiar with the Hungarian space sector.<\/p>\n Thanks to his ambitions and network of contacts, S\u00e1rhegyi quickly made his presence felt in the satellite project\u2019s orbit. He said that the Ministry of Foreign Affairs and Trade (KKM) hired him as a legal advisor in 2018, which is how he came to work with Orsolya Ferencz, who was working on the space strategy at the time. Although his parents\u2019 law firm also did work for the KKM, S\u00e1rhegyi claimed that his success in the space sector was due to his own professional work and had nothing to do with his parents\u2019 contract.<\/p>\n The other business circle was 4iG, led by Gell\u00e9rt J\u00e1szai, which was expanding at a breakneck pace at the time and became one of the country\u2019s largest companies in just a few years. Starting in 2018, it became a major player in the IT sector, and after 2020, it began expanding into the telecommunications market. In this process, in addition to state subsidies and assistance from regulatory authorities, Orb\u00e1n\u2019s special attention also played a key role. Direkt36 previously revealed that there were instances when the prime minister personally negotiated one of 4iG\u2019s telecommunications-related deals, which was, in theory, a private matter<\/a>.<\/p>\n Soon, the business circles of J\u00e1szai and S\u00e1rhegyi merged. In August 2020, CarpathiaSat Zrt. was founded with the goal of launching and operating Hungary\u2019s first satellite into Earth orbit. The Hungarian government established this company jointly with 4iG and one of S\u00e1rhegyi\u2019s companies (New Space Industries Zrt.).<\/p>\n Istv\u00e1n (second from the left) joined the business \u2013 Photo: 4iG<\/p><\/div>\n Influential business figures had thus emerged around the satellite program, but at that point it still appeared that government agencies would essentially control the project. At the time, they were focused on technical issues, such as what kind of technical capabilities the country\u2019s satellite would need.<\/p>\n The project was coordinated by a team from the Ministry of Foreign Affairs led by Orsolya Ferencz. \u201cFor example, they also incorporated the needs of the Ministry of Defense,\u201d said a source familiar with the project, noting that military considerations were taken into account during the planning process. In addition to the Ministry of Defense, the National Media and Infocommunications Authority (NMHH) was also involved in the work. The NMHH was needed, among other reasons, because this authority would be responsible for conducting international negotiations regarding the satellite\u2019s orbital position.<\/p>\n This is how the concept of a dual-use Hungarian satellite system took shape. This meant that, in addition to civilian uses\u2014such as broadcasting and communications\u2014the satellite was also intended for military purposes. In doing so, Hungary would have cooperated with its NATO partners, meaning the satellite would have contributed to the development of defense capabilities within NATO.<\/p>\n Brigadier General Imre Porkol\u00e1b, who had worked closely with NATO during his career, played a significant role in formulating these objectives. He was the first Hungarian soldier to graduate from the Royal Military Academy in the United Kingdom, where G\u00e1sp\u00e1r Orb\u00e1n later studied as well. During his military career, he served in Iraq and Afghanistan, and later worked as a NATO representative at the U.S. Department of Defense, the Pentagon. Starting in 2022, Porkol\u00e1b served as the ministerial commissioner responsible for defense innovation within the Ministry of Defense. (Porkol\u00e1b confirmed to Direkt36 that he did indeed participate in the technical coordination of the satellite program on behalf of the Ministry of Defense.)<\/p>\n The government envisioned not a single satellite but a system consisting of multiple satellites. According to the plans, the core of the system would be a larger satellite orbiting in what is known as a geostationary orbit. Only a limited number of satellites can occupy this specific orbit, which is in sync with the Earth, so that when viewed from the Earth\u2019s surface, it always appears at the same point in the sky\u2014that is, it continuously covers a fixed area. This large satellite would be assisted by smaller satellites in lower orbits that are linked to it and orbit faster relative to the Earth.<\/p>\n Since the Hungarian government had no experience with building or operating satellites, the concept\u2019s developers also considered whom to entrust with carrying out the project. This led to the idea of acquiring SpaceCom, an Israeli satellite operator. In June 2021, 4iG announced that, together with the partially state-owned CarpathiaSat, it would acquire a majority stake in the Israeli company.<\/p>\n This seemed logical, as the Hungarian government already had a relationship with SpaceCom. Back in the 1980s, the United Nations telecommunications agency allocated to Hungary a specific orbital slot in space where it could operate its own satellite. Since the country had neither the funds nor the technology for this at the time, the Hungarian government leased the orbital slot to SpaceCom in 2004. The company subsequently began operating its satellite, named AMOS 3, on that frequency band.<\/p>\n \u201cThat way, we would have acquired the necessary knowledge and capabilities,\u201d said a source familiar with the concept, explaining what was behind the attempted acquisition. However, the acquisition of SpaceCom ultimately fell through. For national security reasons, the Israeli government did not approve a foreign investor acquiring a controlling stake in the satellite company, which also serves the Israeli military.<\/p>\n \u201cIn the end, we only managed to buy 20 percent of SpaceCom, which is good for nothing, but we spent a fortune on it,\u201d<\/p><\/blockquote>\n the source said of the failed attempt.<\/p>\n At the same time, government agencies working on the concept were also considering who should manufacture the necessary satellites. According to sources familiar with the matter, the names of leading global players such as the European company Airbus and Thales came up during these discussions. The vision for the manufacturing process was that both the Hungarian scientific community and domestic companies would benefit from it. \u201cJust as the car factories here have Hungarian suppliers,\u201d said one source, explaining how smaller domestic companies could be involved in the project.<\/p>\n This was the concept that Orsolya Ferencz presented to Viktor Orb\u00e1n in the fall of 2023. The prime minister, however, had entirely different ideas.<\/p>\n Remred’s factory in Martonv\u00e1s\u00e1r \u2013 Photo: Andr\u00e1s Szab\u00f3<\/p><\/div>\n By early 2024, it had become clear to the foreign affairs team working on the satellite program that control had slipped from their hands. In January of that year, the Orb\u00e1n government decided to transfer oversight of space industry developments from the Ministry of Foreign Affairs and Trade (KKM) to the Ministry of National Economy, led by M\u00e1rton Nagy (NGM).<\/p>\n This opened up even more opportunities for 4iG.<\/p>\n \u201cThe goal was to have a ministry oversee the sector that would carry out 4iG\u2019s requests,\u201d said a source familiar with the situation. This would not have been the case if the project had remained with Ferencz, as she opposed handing over the satellite investment to private hands. (Ferencz stated that oversight of space industry developments was transferred from her to the NGM despite the fact that the Ministry of National Economy lacked the necessary technical expertise.)<\/p>\n Since Ferencz repeatedly raised his technical and national security concerns regarding 4iG\u2019s role with government leaders\u2014according to sources familiar with the matter\u2014the politician gradually became isolated. (Although it was suggested in November 2023 that she might be Fidesz\u2019s candidate for mayor of Budapest, this ultimately did not happen. Despite Tibor Kapu\u2019s spaceflight being a success story, Ferencz appeared only in 162nd place on the Fidesz list for the 2026 parliamentary election.)<\/p>\n After the sector was transferred to the Ministry of National Economy (NGM), 4iG also stepped up its activities. A few weeks later, in February 2024, they announced the creation of a new subsidiary, 4iG S&T (4iG Space and Technology Zrt.), which would consolidate the group\u2019s space industry and satellite development efforts. At the same time, they announced that Istv\u00e1n S\u00e1rhegyi would be appointed to lead the new company.<\/p>\n By this time, an even closer partnership had developed between 4iG\u2014led by J\u00e1szai, who saw opportunities in the space industry\u2014and S\u00e1rhegyi.<\/p>\n \u201cThe company Remred was the key to bringing them together,\u201d<\/p><\/blockquote>\n said a source familiar with the Hungarian space industry. Remred was, in fact, intended to play a pivotal role in the ambitious space industry plans.<\/p>\n Remred originally belonged to the state-owned Energy Research Center (EK). The company\u2019s significance stemmed from the fact that it held the manufacturing rights to the Pille radiation detector. The Pille was one of the most successful inventions in Hungarian space research, and it was even taken into space by Bertalan Farkas, the first Hungarian astronaut, in 1980. The device is still in use today on the International Space Station.<\/p>\n S\u00e1rhegyi also recognized the value inherent in Remred and acquired the company in 2021. In 2022, he also announced that he would establish a satellite manufacturing plant at Remred\u2019s base in Martonv\u00e1s\u00e1r, Fej\u00e9r County. At that time, he stated that the plant would manufacture small satellites weighing between 100 and 400 kilograms, along with the systems to operate them.<\/p>\n In the meantime, J\u00e1szai also took notice of Remred. Since 4iG lacked significant experience in space technology, the company owned by S\u00e1rhegyi was a perfect fit for them. In February 2024\u2014along with the establishment of its space industry subsidiary\u20144iG announced that, through a capital increase, it would acquire a 45 percent stake in Remred and would also support the satellite manufacturing plans in Martonv\u00e1s\u00e1r. Building on this, 4iG began emphasizing that, through Remred, it had gained access to significant aerospace engineering expertise and an international network of contacts.<\/p>\n Following these developments, the 4iG team led by J\u00e1szai and S\u00e1rhegyi set out, among other things, to negotiate with the Ministry of National Economy regarding what services the satellite system they planned to build would provide to the Hungarian government in the future.<\/p>\n According to a source familiar with the operations of the Tisza government, the Ministry of National Economy (NGM) signed three contracts with 4iG for telecommunications and Earth observation services. The first contract was signed back in 2024. The two additional contracts supplementing this one were signed shortly before the parliamentary elections in April of this year. The total value of the contracts is 2.36 billion euros (approximately 850 billion forints). The Hungarian government has committed to paying this amount over the next decade and a half in exchange for 4iG\u2019s satellite services. (Telex previously reported<\/a> on these figures in a detailed article. )<\/p>\n According to the source, the current government considers the contracts to be favorable to 4iG. It is difficult to terminate them, but if the government were to attempt to do so unilaterally, the source says it would have to pay the entire fee to 4iG in a lump sum. Furthermore, under the terms of the contracts, the state is required to make payments even during the preparatory phase of the satellite project. In 2025, for example, the Hungarian government paid 4iG an advance of 125.188 million euros (approximately 49 billion forints). (4iG stated that it bears the full risk of the project and that, in its view, the advance payment is lower than the market standard. It added that the government would only be required to pay the remaining full amount if the contract were terminated without legal grounds.)<\/p>\n According to a source familiar with the current government\u2019s operations, other parts of the contracts also raise questions. This is because 4iG has committed to providing services to the government until the satellite system is completed. It plans to do so by purchasing the necessary data from a third party. According to the source, it is unclear why this is beneficial to the government, since the Hungarian government could contract directly with this third party\u2014likely at a lower cost\u2014without going through 4iG. (4iG stated that this obligation to the Hungarian government stems not from the satellite program but from a separate agreement.)<\/p>\n After 4iG signed a contract with the Hungarian government, it began building its system, dubbed HUSAT (Hungarian Satellite). In April of this year, before the parliamentary elections, it reached an agreement with the American company Northrop Grumman to manufacture the larger satellite. The smaller satellites, meanwhile, are scheduled to be manufactured at the Martonv\u00e1s\u00e1r plant. Construction of this facility began in the spring of 2024; the project is set to be completed this December, after which trial operations can begin.<\/p>\n Domestic space industry players and participants in the state satellite project have reacted to these plans with skepticism. \u201cJust because someone knows how to fold a paper boat doesn\u2019t mean they\u2019ll be able to build a submarine,\u201d said one source, who believes that Remred\u2014which is capable of manufacturing radiation detectors\u2014lacks the necessary experience to produce the far more complex satellites.<\/p>\n In response, S\u00e1rhegyi told Direkt36 that manufacturing and development tasks are carried out jointly with their international partners to minimize technological risks. At the same time, they are also developing their own technology. Thus, the satellites manufactured at the Martonv\u00e1s\u00e1r plant will incorporate both in-house and international technologies, he added.<\/p>\n The satellite system has not yet been completed. Plans regarding this are greatly influenced by the fact that Tisza\u2019s election victory has created a new situation for 4iG. The new government announced in August that it would review the contracts between the Hungarian state and 4iG, including agreements related to satellite development. A decision on further cooperation with 4iG will be made thereafter.<\/p>\nII. Military and civilian objectives
\n<\/strong><\/h3>\nIII. Orb\u00e1n steps in
\n<\/strong><\/h3>\n