Budapest, Hungary. Hungary returned two seized armoured bank vehicles to Ukraine on Thursday but withheld cash and gold worth approximately $82 million, citing an investigation into alleged money laundering. Kyiv denounced the move as theft.
Seizure and diplomatic fallout
Relations between Hungary and Ukraine, already strained by Hungarian Prime Minister Viktor Orban’s close ties to Russia, deteriorated further last week when Hungary detained seven Ukrainians transporting cash and gold.
Kyiv accused Budapest of taking the bank employees hostage to pressure Ukraine into restarting suspended oil shipments, and said the employees were engaged in a legitimate transfer. Those detained were expelled by Hungary and crossed into Ukraine on Friday.
Oschadbank response and condition of vehicles
Ukraine’s Oschadbank said the vehicles were turned over to diplomats and customs officers, but that they had sustained some damage that would be formally assessed once they were back in Ukraine. The bank said the cash and gold remained “illegally held in Hungary.”
Ukraine has demanded the return of the seized assets, with Foreign Minister Andrii Sybiha on Sunday describing Hungary’s actions as an “unprecedented act of state banditism and racketeering.”
The detainees’ lawyer, Lorant Horvath, told reporters on Thursday that the Ukrainian bank believed the money transport was “entirely lawful.” He said Oschadbank would use all legal means at its disposal to recover its assets.
Hungarian law allows temporary retention
Hungary’s parliament passed a law proposed by Orban’s Fidesz Party on Tuesday allowing the tax authority to retain the cash and gold for 60 days while it investigates the origin and destination of the assets and evaluates any implications for Hungary’s national security.
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