When in February I wrote a post on Ernő Keskeny, “the man behind the Russian-Hungarian rapprochement,” I was planning to write about another key figure, Szilárd Kiss, who was also instrumental in convincing Viktor Orbán of the importance of the Russian market for Hungary. At the moment Kiss is in jail in connection with defrauding the already ailing Orgovány és Vidéke Takarékszövetkezet. The fraud itself involved a loan of 700 million forints that Kiss couldn’t pay back but that, with the assistance of the president of the credit union and a businessman friend, he managed to settle for 140 million, 40 of which went into the pocket of the bank president. It is unlikely that Kiss will be able to wiggle himself out of this very tricky situation because he and his businessman friend discussed all the details of the deal on a wiretapped telephone.
That was in the summer of 2013. Even after that date, however, Kiss remained a member of the Hungarian diplomatic corps. Now that he is in jail nobody wants to take responsibility for having hired him, but it looks as if it was the ministry of agriculture, specifically the minister, Sándor Fazekas, who thought that Kiss would do a bang-up job in Moscow, where he claimed to have important friends in government circles. Kiss spent the larger part of his adult life in Russia and has a Russian wife or a girlfriend of long standing, Yelena Tsvetkova, who also has extensive ties to Russian politicians. She is in charge of the newly established Hungarian visa center in Moscow. This is the office where Russian citizens for a certain amount of money can gain permission to settle in Hungary.
Otherwise Kiss worked as a lobbyist for business people interested in Russian or Hungarian opportunities, while making sure that he received payment for his good offices in these transactions. He usually asked people to invest in his own mostly failing enterprises. It was most likely that kind of arrangement that was behind a deal between Sergey Galitsky, a Russian billionaire, and Péter Szijjártó, then still undersecretary in the prime minister’s office, to establish a large logistical center for Galitsky’s chain of supermarkets, Magnit, in Hungary. In return, Galitsky became a partner in one of Kiss’s businesses, Winexport Kft. The logistical center has been shelved.
It is bad enough that one of the government’s top advisers on Russian agro-business turned out to be a swindler. Quaestor, perhaps the largest of the recently failed financial conglomerates, also had a role to play in the foreign business plans of the Orbán government. Quaestor, the financial empire of Csaba Tarsoly, managed the Moscow and Istanbul branches of the government’s Magyar Nemzeti Kereskedőház (Hungarian National Trading House), designed to encourage and smooth the way for ventures of Hungarian businessmen in Russia and Turkey and Russian and Turkish businessmen in Hungary. Yesterday the Hungarian foreign ministry broke the contract with Quaestor.
Szilárd Kiss and Csaba Tarsoly are no strangers. Kiss for years was on the board of at least two Quaestor firms, Quaestor Financial Consulting and Quaestor Energy. The two men had joint business ventures in Russia because Tarsoly believed Kiss’s fabulous stories about his extensive connections in Russia. According to Index, Kiss as usual failed to deliver.
And now enter Viktor Orbán’s friend from Felcsút, Lőrinc Mészáros. While the journalists of Index were looking for Kiss’s Russian businesses, they found a company called Mадьяp that was established in November 2012. Originally it belonged to Kiss alone, but by now he has two partners, a Russian woman and Lőrinc Mészáros. The mayor of Felcsút did not include this Russian business on his financial statement. When confronted by the journalist, Mészáros sounded truly confused. At one point he thought that he was part owner of Verngerskie Produkti, but he was mistaken. That company’s sole owner is Szilárd Kiss.
Mészáros apparently decided to do business with Kiss because Kiss promised him that he would be able to sell his bacon to Magnit, the huge Russian supermarket chain whose owner is a partner in one of Kiss’s businesses. Keep in mind that it was not so long ago that Viktor Orbán himself opened his friend’s mangalica farm. But it is a modest business, while Magnit has 7,500 stores all over Russia. So, the whole thing sounds like a hoax to me, the kind Szilárd Kiss seems to specialize in.
Viktor Orbán’s new type of diplomacy has not only led to Hungary’s isolation. His reliance on shady businessmen who convinced him that old-fashioned diplomacy is a thing of the past has embroiled the country in crooked and/or fanciful business deals. And it seems to me that Orbán hasn’t learned his lesson yet because only a couple of days ago he delivered a lecture to Hungarian diplomats about his philosophy of a new-age diplomacy. Unfortunately, his ideas come straight from swindlers who are already in jail or will be there soon.