Hungarian authorities temporarily detained seven Ukrainian citizens and seized two armored cars carrying tens of millions of euros in cash across Hungary on suspicion of money laundering, officials said on Friday.
The Ukrainians were released on Friday, following their detention on Thursday, but Hungarian officials held onto the cash, prompting Ukraine to accuse Hungary’s Russia-friendly government of illegally seizing the money.
“We will not tolerate this state banditism,” Ukrainian Minister of Foreign Affairs Andrii Sybiha said.
Photo: AP
The seven detained Ukrainians were employees of the Ukrainian state-owned Oschadbank, who were traveling in the two armored cars that were carrying the money between Austria and Ukraine as part of regular services between state banks, Sybiha said.
Oschadbank board chairman Yurii Katsion wrote on Facebook that Hungary “groundlessly questions the source of the state bank’s funds, transported in accordance with international agreements and supported by all necessary documentation.”
The shipment seized by Hungary included US$40 million, 35 million euros (US$40.66 million) and 9kg of gold — worth about US$1.5 million at current prices — a separate statement by Oschadbank said.
The Hungarian government said it would expel the seven detained Ukrainians, but did not give details on why they would be released if they were suspected of money laundering.
The incident further inflamed rising tensions between Hungary and Ukraine, which are embroiled in a bitter feud over Hungary’s access to Russian oil through a pipeline that crosses Ukrainian territory.
Oil shipments through the Druzhba pipeline have been interrupted since Jan. 27.
Ukraine said a Russian drone strike damaged the pipeline’s infrastructure, and repairing it carried risks to technicians.
Even if restored, it would remain vulnerable to further Russian attacks, Ukraine said.
The Hungarian government has accused Ukraine of deliberately holding up supplies of Russian crude, and has vowed to take strong countermeasures against Kyiv until oil flows resume.
Hungarian Prime Minister Viktor Orban, who has maintained close relations with the Kremlin while escalating an aggressive anti-Ukraine campaign ahead of crucial elections next month, has called Ukraine Hungary’s “enemy,” and accused Ukrainian President Volodymyr Zelenskiy of seeking to provoke an energy crisis to sway the April 12 vote.
“The best way for the Ukrainians to achieve their demands on Hungary is if they get rid of the national government and the prime minister who is standing in their way,” Orban said.
While he did not directly mention the detention of the bank vehicles, Orban alluded to the incident, saying: “We will stop things that are important to Ukraine passing through Hungary until we get the approval of the Ukrainians for oil shipments.”
“The Ukrainians will run out of money sooner than we will run out of oil,” he added.
Trailing in most polls behind a popular center-right challenger, the populist Orban has staked the election on convincing voters that Ukraine poses an existential threat to Hungary’s security.
In office since 2010, the EU’s longest-serving leader said that if he loses the election, the EU would force Hungary into bankruptcy by cutting Russian energy imports, and that Hungarian youth would be sent to their deaths on the front lines in Ukraine.
Sybiha cast Orban’s conduct as electoral politicking, saying the detention of the seven Ukrainians and seizure of money was “part of Hungary’s blackmail and electoral campaign.”
“We reserve the right to take appropriate action, including initiating sanctions and other restrictive measures,” Sybiha said. “We once again demand Hungary stop dragging Ukraine into its domestic politics and electoral campaign.”
Hungary has defied EU efforts to wean off Russian fossil fuels, and continued to purchase them despite Moscow’s invasion.
Orban previously ceased diesel shipments to Ukraine, vetoed a new round of EU sanctions against Russia and blocked a major 90 billion euro loan for Kyiv in retaliation for the interruption in oil shipments.
He on Thursday told an economic forum that Hungary would use “force,” including “political and financial tools,” to compel Ukraine to resume oil shipments.
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