Hungary returns bank vehicles seized from Ukraine, holds on to $105m in cash and gold
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Officials from Hungary's National Tax and Customs Administration returning one of two Ukrainian armoured cash transport vehicles to Ukraine's Oschadbank, in Budapest on March 12.
PHOTO: AFP
- Hungary returned seized vehicles to Ukraine but is withholding $82 million in cash and gold, suspecting money laundering.
- Ukraine accuses Hungary of "state banditism" and hostage-taking to pressure restarting oil shipments and demands the assets' return.
- Orban's party passed a law allowing Hungary to retain the assets for 60 days amidst political tensions and an upcoming election.
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BUDAPEST – Hungary returned two seized armoured bank vehicles to Ukraine on March 12 but withheld cash and gold worth approximately US$82 million (S$105 million), citing an investigation into alleged money laundering, a move that Kyiv has denounced as theft.
Relations between Hungary and Ukraine, already strained by Hungarian Prime Minister Viktor Orban’s close ties to Russia, reached a new low last week when Hungary detained seven Ukrainians transporting cash and gold.
Kyiv accused Budapest of taking the bank employees – engaged in a legitimate transfer – hostage to pressure Ukraine into restarting suspended oil shipments.
Those detained were expelled by Hungary and crossed into Ukraine on March 6.
Ukraine has demanded the return of the seized assets, with Foreign Minister Andrii Sybiha on March 8 describing Hungary’s actions as an “unprecedented act of state banditism and racketeering”.
The detainees’ lawyer, Mr Lorant Horvath, told reporters on March 12 that the Ukrainian bank believed the money transport was “entirely lawful”.
“Oschadbank will use all legal means at its disposal to recover its assets,” he said.
Hungary’s Parliament passed a law proposed by Mr Orban’s Fidesz party on March 10, allowing the tax authority to retain the cash and gold for 60 days while it investigates the origin and destination of the assets and evaluates any implications for Hungary’s national security.
The tensions come as Mr Orban faces a serious electoral challenge to his 16-year rule on April 12.
He has made the war in Ukraine a central plank of his campaign, saying the centre-right opposition would drag Hungary into the conflict, which the opposition has repeatedly denied.
Mr Orban has also vetoed new European Union sanctions on Moscow as well as a huge loan for Ukraine over the oil dispute. REUTERS
Hungarian Prime Minister Viktor Orban (right) and Russian President Vladimir Putin in Hungary’s capital, Budapest, in 2019. Mr Orban has close ties to Russia.
PHOTO: EPA
