Hungary is strengthening its cooperation with the United States
The visit by U.S. Vice President JD Vance to Budapest has resulted in a series of far-reaching agreements between Hungary and the United States. The focus is on energy, defense, and technology—precisely the areas in which governments are currently recalibrating their strategic dependencies.
This is particularly evident in the energy sector. The Hungarian oil company MOL agreed to purchase 510,000 tons of U.S. crude oil worth approximately $500 million. Even more significant, however, is the nuclear component of the trip: Washington is supporting a feasibility study for the potential deployment of up to ten small modular reactors of American design in Hungary. The estimated value of this project is $20 billion.
The project is accompanied by a further agreement between Westinghouse and the state-owned energy company MVM. It concerns, on the one hand, the extension of the operating life of the Paks 1 nuclear power plant and, on the other, cooperation on small modular reactors. In addition, Westinghouse is to supply Hungary with nuclear fuel. This gives the U.S.-Hungarian energy partnership a strategic depth that clearly goes beyond symbolic letters of intent.
Arms buildup, satellites, digital infrastructure
The visit also sent clear signals regarding security policy. Hungary announced its intention to procure U.S. HIMARS rocket systems worth $700 million. The White House framed the purchase in the context of NATO’s eastern flank and described it as a contribution to the alliance’s collective defense capabilities.
The procurement is accompanied by a defense memorandum between L3 Harris and the publicly traded Hungarian company 4iG. The goal is to integrate communication technology into the HIMARS system to ensure compatibility with NATO and U.S. structures. In parallel, Northrop Grumman and 4iG launched a joint initiative to develop Hungary’s first geostationary satellite by 2030.
Projects have also been agreed upon in the civilian technology sector. Microsoft signed agreements with the Hungarian government and Gabor Denes University regarding AI and digital programs for small and medium-sized enterprises. In addition, a separate agreement was signed to secure the public sector’s digital infrastructure through cloud solutions. In the healthcare sector, GE Healthcare and Semmelweis University plan to establish a center of excellence in oncology.
