Below are the major recent developments, both the claims and their implications -especially for international actors and also expats in the city.
 
Three Recent Incidents & Allegations
 
1. Hungarian Spy Network in Ukraine (Zakarpattia Region)

In May 2025, the Ukrainian Security Service (SBU) claimed to have uncovered a spy ring allegedly run by Hungarian military intelligence, collecting information on military defenses and local sentiment in western Ukraine, especially the Zakarpattia region. 

Hungary dismissed the accusations as “propaganda,” though reciprocal diplomatic expulsions followed: two Ukrainians allegedly working under diplomatic cover were expelled from Hungary; similarly, two Hungarian diplomats were expelled by Kyiv. 

2. Surveillance of EU Officials Visiting Hungary

Investigative media (Direkt36 and De Tijd) reported that Hungary’s Information Office (IH) — a domestic intelligence/spy agency — conducted surveillance on EU officials, including OLAF (the EU Anti-Fraud Office). Specific allegations include instances of hotel room searches, telephone tap-ins, following officials, and copying data from laptops of visiting EU delegations. 
 
The European Parliament has raised concerns and asked questions, with some MEPs calling for formal investigations and for EU institutions to ensure the safety and privacy of their staff while operating in Hungary. 

3. Russian Diplomatic Presence and “SIGINT Nests”

Multiple sources have noted that Hungary has refrained from expelling a large number of Russian diplomats — unlike many other EU countries. Indeed, over the past few years, the number of accredited Russian diplomats in Budapest has risen. One investigative report estimated that total staffing (including administrative/technical staff) at the Russian embassy in Budapest could be as high as 115 people, many with full or partial diplomatic immunity. 
 
Some of these personnel are alleged (by analysts and journalists) to serve intelligence roles, or to facilitate SIGINT-(signals intelligence) operations. 

Reactions & Diplomacy
 
Hungary’s Official Position

The Hungarian government has repeatedly downplayed many of these allegations. In the Ukraine spy-network case, Foreign Minister Péter Szijjártó called the SBU’s claims “propaganda.” 
 
Ukraine’s Response

Kyiv has used diplomatic tools: arrests, expulsion of diplomats, and postponement of scheduled talks (for example, delayed bilateral consultations in Uzhhorod following the spy-network exposure) have marked its response. 

EU Institutions & Member States

There is growing concern among EU bodies over surveillance of EU officials on Hungarian soil. The allegations of IH spying have prompted written questions in the European Parliament, demands for investigations, and broader concerns about rule of law, privacy, and diplomatic norms. 
 
Separately, foreign policy debates in the EU have paid attention to Hungary’s stance toward sanctions on Russia, its visa and foreign funding laws, and its alignment in broader geopolitical contexts — all influencing how seriously these spy-hub allegations are receiving scrutiny. 
 
Why be a Spy in Budapest?

Several factors appear to make Budapest attractive for intelligence operations — whether by Hungary’s own services or foreign powers:

Diplomatic Immunity & Low Expulsion Rate

While many EU countries have expelled Russian diplomats for suspected intelligence activity since the Ukraine war began, Hungary has generally not done so (or done so to a much lesser extent), which some analysts see as enabling continuing presence of foreign intelligence personnel. 
 
Strategic Location and Political Positioning

Hungary borders Ukraine, has substantial political connections with both EU and non-EU powers, and often acts more independently of mainstream EU consensus — especially in foreign policy toward Russia. This political posture can create openings for intelligence activity. 

Reports of Established Intelligence Infrastructure

The presence of administrative-technical staff (with diplomatic immunity), reports of interception or surveillance infrastructure (antennae on embassy buildings, for example), and the activity of Hungarian agencies like IH suggest that both passive and active capabilities are in place. 

Implications & Risks

Strained Relations with Neighbors & Kyiv

The espionage allegations have already disturbed Hungary-Ukraine relations, especially around minority rights in Zakarpattia and scheduled bilateral talks. Trust has eroded, complicating diplomatic progress. 
 
EU Oversight, Legal Risk, and Funding

As part of broader concerns about democratic backsliding, surveillance, foreign interference, and accountability, Hungary faces scrutiny from EU institutions. Potential legal challenges, conditionality around funds, and reputational costs are on the table. 
 
Security Risks for Diplomats, NGOs, Expats

If surveillance of delegations and data interception is indeed happening, it raises concerns over privacy and security for visitors, foreign workers, NGOs, media, and expatriate residents. Even if not under direct threat, perception of surveillance may affect behavior, sense of safety, and the attractiveness of Budapest as a base for international actors.
  
What We Don’t Know / What’s Under Investigation
 
The full extent of Hungary’s own intelligence operations: how expansive they are, how much oversight there is, or how much overlap exists with foreign intelligence services.
 
Proof of intent in many cases: for example, whether Hungarian authorities are planning any incursion (as alleged in Ukraine), or whether foreign intelligence operatives are overstretching diplomatic cover legally or illegally.
 
Independent confirmation of some major surveillance claims — many are based on media investigations or intelligence agency reports, which by nature are partial or politically contested.
  
Spy Sum Up
 
Budapest is no longer just a picturesque Central European capital; it is increasingly being viewed in geopolitical circles as a stage for intelligence operations. The city’s rise as a “spy hub” involves multiple actors - from Russian diplomats to Hungarian intelligence agencies, to those monitoring EU officials.

For expats, diplomats, and anyone involved in international business, policy, or academia, the signals are clear: surveillance, data risks, and political sensitivities in Hungary are no longer abstractions but active concerns.

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