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Seven employees of the major Ukrainian financial institution Oschadbank were detained in Hungary during a scheduled transfer of foreign currency and precious metals, the bank said in a statement. They were traveling in two vehicles carrying a total of $80 million in cash and nine kilograms of gold. According to Kyiv, the assets were being transported legally under an agreement with the Austrian bank Raiffeisen.
Ukraine’s Foreign Ministry accused Hungarian authorities of taking hostages, stealing money, and “state terrorism.” Kyiv demanded the release of the detainees and requested that the European Union investigate the incident. In response, Hungarian Foreign Minister Péter Szijjártó suggested that the cash may have belonged to a “Ukrainian military mafia.”
“Since January, a total of $900 million and €420 million in cash, as well as 146 kilograms of gold bars, have been transferred through Hungary. First of all, this is an enormous amount of cash — and why would Ukrainians need to transport such a large sum? If this is truly a transaction between banks, a fair question arises: why don’t the banks settle accounts through transfers between themselves? Why is it necessary to physically transport such a huge amount of cash — and through Hungary, of all places?”
According to Szijjártó, some of the detainees have “clear ties” to Ukrainian intelligence services. Hungary’s customs authority said the case involves a former intelligence general who was identified as the organizer of the cash transport operation. His name and other details were not disclosed. Hungarian authorities opened a criminal case against the Ukrainian nationals on charges of money laundering. The government later announced that the individuals involved would be deported.
Relations between Ukraine and Hungary deteriorated in February after oil supplies through the Druzhba pipeline were halted
At the end of February, Hungary blocked a €90 billion EU loan to Ukraine over the suspension of oil transit through the Druzhba pipeline. Budapest claims that Kyiv cut off supplies in an effort to push up fuel prices ahead of Hungarian parliamentary elections scheduled for April 12. The day before the incident, Prime Minister Viktor Orbán pledged not to strike any deals or make compromises.
“We will break through the oil blockade. Not through a deal, not through an agreement, not through a compromise — we will achieve this by force,” Orban said.
On the same day, in response to Budapest’s veto, Ukrainian President Volodymyr Zelensky threatened to give the address of “one person in the European Union” to the military so that they could “speak to him in their own language.” The remarks were criticized by Hungarian opposition leader Péter Magyar, who called on Zelensky to retract his statement. The European Commission also described the comments as unacceptable. Its spokesperson, Olof Gill, noted that Brussels had so far tried to maintain a diplomatic approach to the conflict between Ukraine and Hungary.
Hungary has been cut off from cheap Russian fossil fuels for a month
According to Ukrainian authorities, the Druzhba pipeline was damaged by a Russian strike in January, and repairs could take up to a month and a half. Budapest, in turn, maintains that the suspension of service is the result of political pressure rather than of technical failure. Hungary and Slovakia have set up a joint commission to examine the condition of the southern branch of the Druzhba pipeline and have demanded that their chosen experts be granted access, but they have not yet received approval.
Both countries have oil reserves and can also receive crude via the Adria pipeline from Croatia, according to the European Union. However, these alternative sources are more expensive. Prices are also being affected by the ongoing war in the Middle East.
Hungary has repeatedly blocked European assistance to Ukraine and opposed anti-Russian sanctions
Even before the problems with the Druzhba pipeline arose, Budapest had repeatedly vetoed EU initiatives related to support for Ukraine, ranging from financial and military aid to sanctions against Russia and issues of European integration. Prime Minister Orbán’s government says its position is driven by the desire to protect the rights of the ethnic Hungarian minority in Ukraine’s Transcarpathia region, as well as by Hungary’s energy interests and concerns about further escalation of the war.