Ukrainian Foreign Minister Andriy Sybiha
Hungarian authorities detained seven employees of Ukraine's second-largest bank and seized more than $80 million in cash and gold they were transporting in two armored trucks from Austria to Ukraine via Hungary, escalating a worsening standoff between the two neighboring countries over oil shipments.
Hungarian Prime Minister Viktor Orbán has escalated his antagonism toward Ukraine after it delayed restarting oil pumping to Hungary when a pipeline was damaged in late January. With parliamentary elections approaching on April 12, he has made the dispute the centerpiece of an increasingly nationalist reelection campaign, with his polls falling as he seeks a fifth term in office.
Employees of state-owned Oschadbank were temporarily detained on Friday while driving armored vehicles loaded with $40 million, 35 million euros and nine kilograms of gold bars from Raiffeisen Bank in Austria to Ukraine, the bank said.
Hungary's National Tax and Customs Administration said the action was part of a money laundering investigation. Oschadbank said the funds were being transported in accordance with an agreement with Raiffeisen Bank.
The seven employees were subsequently deported from Hungary.
Ukrainian Foreign Minister Andriy Sybiha said that the actions of the Hungarian authorities constitute hostage-taking and robbery, and promised to address the EU with a request for clarification.
“This is state terrorism and extortion,” said Sybiha.
The seizure of cash and gold and the brief detention of employees is the harshest step Orbán has taken so far in his conflict with Ukraine. Orbán has emphasized his relations with Russia and praised cheap Russian energy supplies, while accusing Ukraine of trying to foment an energy crisis in the country.
Ukraine failed to resume the flow of Russian oil supplies after a pipeline carrying these supplies was hit by a Russian drone on Ukrainian territory in late January.
Orbán said Ukrainian President Volodymyr Zelensky has repaired the pipeline but delayed transit to pressure Hungary to adopt a series of European measures to help Ukraine in its fight with Russia, including a 90 billion euro loan and a package of sanctions against Russia.
Hungary, which has been at odds with the European bloc's political support for Ukraine since the beginning of the Russian invasion, while simultaneously building closer ties with the Donald Trump administration, has been reluctant on both issues.
Ukraine says Russia is to blame for the pipeline damage and that oil flow could resume soon as it tries to stabilize the pipeline, writes WSJ.
Last month, Orbán deployed troops near critical energy infrastructure, saying Ukraine could take further steps that would jeopardize the country's energy supply and distribution.
Zelensky has denied these plans, while Hungarian opposition leader Péter Magyar, a former Orbán loyalist who is now leading in the polls, accused the prime minister of "spreading fear and inciting panic."
