Spain prevented Hungary from buying Talgo, a Madrid-based train manufacturer, due to its potential usefulness for Ukraine's reconstruction, the Financial Times reported on Sept. 12, citing undisclosed officials.
Madrid vetoed the 619 million euro bid ($680 million) due to concerns about Budapest's warm ties to Moscow amid Russia's ongoing full-scale war against Ukraine, the FT wrote.
The Spanish government publicly rejected the offer by Hungary's Ganz-Mavag over national security concerns, but the exact grounds for this decision remained classified.
Budapest-based Ganz-Mavag is owned by a private equity firm managed by Mol, Hungary's leading oil and gas company, whose leadership is close to Prime Minister Viktor Orban. The Mol Group also processes Russian crude oil that Hungary continues to buy despite the war in Ukraine.
The Hungarian company called the move an "arbitrary decision regarding a non-strategic company." The failed bid underscores growing tensions between Hungary and other European countries over the former's proximity to Russia.
Orban's Hungary has repeatedly delayed sanctions against Moscow and aid to Kyiv, drawing ire among its EU partners. Spanish Prime Minister Pedro Sanchez denounced Orban as "pro-Putin."
A Spanish official told the FT that Talgo operates an advanced engineering that allows the seamless transition between Ukrainian rails and narrower European tracks. Different gauges used in Ukraine mean that passengers and cargo often have to change trains when traveling to and from the EU.
Ukrainian Railways are currently developing a European-gauge railway from the Zakarpattia Oblast city of Uzhhorod to Chop, a town at the Hungarian border, as part of EU integration of Ukraine's transport infrastructure.
Elsa Court
