Hungary has seized around $115 million and gold from a Ukrainian bank transfer as Budapest pressures Kyiv to restart oil shipments from Russia.
Relations between the two have been strained by Hungarian Prime Minister Viktor Orbán’s close ties to Russia, which invaded Ukraine in February 2022 to start what has become the deadliest war on European soil in almost 70 years.
Hungary last week detained seven Ukrainians who were transporting a total of $US40 million ($57 million), 35 million euros ($58 million) and 9 kilograms of gold from Austria to Ukraine in two armoured vehicles.
Viktor Orbán (left) has close ties with Russian President Vladimir Putin. (Reuters: Sputnik/Valeriy Sharifulin/Pool)
The Hungarian Tax Authority said it was pursuing criminal proceedings on suspicion of money laundering.
Ukrainian Foreign Minister Andrii Sybiha said the people detained, one of whom was a former Ukrainian intelligence service general, were employees of the state savings bank, Oschadbank.
Kyiv accused Budapest of taking bank employees engaged in a legitimate transfer hostage in order to put pressure on Ukraine to restart suspended oil shipments, which had been disrupted since late January.
Andrii Sybiha has demanded the immediate return of the money and gold to Ukraine. (Reuters: Valentyn Ogirenko)
The seven Ukrainians were later expelled from Hungary and crossed into Ukraine on Friday.
Hungary’s ruling Fidesz party has proposed authorities hold onto the cash and gold for two months pending an investigation into the seizure, which Ukraine has labelled theft.
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The proposal was submitted to Hungary’s parliament on Monday, local time, and could be voted through in an expedited process.
The cash and gold remained in Hungary, however, and Mr Orbán said on Saturday that “we will deal with the fate of the seized money once we know what it is”.
“We want to know what the Ukrainians are doing with this huge amount of money,” Mr Orbán said at a campaign event for April’s parliamentary elections, at which he faces his biggest challenge to his rule in 16 years.
Viktor Orbán is facing the greatest challenge to his rule in 16 years in the upcoming parliamentary elections. (Reuters: Johanna Geron)
The eastern European neighbours have a tense relationship, with Hungary pledging to prevent Ukraine’s entry into the EU earlier this week and Ukraine claiming Hungary has spied on them.
On Sunday, Mr Sybiha demanded the immediate return of the cash and the gold and called Hungary’s actions an “unprecedented act of state banditism and racketeering”.
“This money does not belong to Hungary or its government; it is owned by Ukraine’s state bank, Oschadbank, and thus by Ukrainian taxpayers,”
Mr Sybiha said.
Ukraine’s foreign ministry on Monday also accused Hungary of violating the rights of its citizens by keeping them handcuffed for 28 hours, confiscating their personal belongings and not giving them proper medical care.
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The bill submitted to Hungary’s parliament on Monday proposed the cash and gold should remain in Hungary for a period of 60 days while the tax authority conducted “covert intelligence gathering” on the case.
The bill says the investigation needs to clarify the origin and destination of the assets as well as “the identity of the couriers and their possible links with criminal or terrorist organisations, as well as the consequences of the transport operation for Hungary’s national security”.
Reuters