Tensions are escalating between Budapest and Kyiv over seized funds and gold belonging to a Ukrainian bank, as Hungary proposes new legislation to hold onto the money for two months amid allegations of state banditry from Ukraine.
The conflict between Budapest and Kyiv has intensified following Hungary's seizure of significant amounts of cash and gold belonging to a Ukrainian financial institution. The ruling party in Hungary, Fidesz, is suggesting a legislative measure that would permit local authorities to retain these assets for a duration of two months. This proposed law is set to be voted on soon, adding urgency to the already fraught relations between the two countries.
On Friday, Hungarian authorities detained seven Ukrainian nationals who were transporting a total of $40 million and €35 million, alongside nine kilograms of gold, from Austria to Ukraine. The Hungarian government cited suspicions of money laundering as the reason for the detentions. However, Kyiv contended that this transfer was routine and compliant with all applicable laws, leading to Ukrainian accusations that Hungary was effectively holding the employees of the state bank, Oschadbank, hostage.
Although the detained individuals were released and reportedly returned to Ukraine, the cash and gold remain in Hungary. Prime Minister Viktor Orbán’s decision to hold these financial resources for an additional period has sparked outrage in Ukraine, which is interpreting the move as a form of state-sponsored banditry, complicating an already tense bilateral relationship.
