Warsaw – Ukraine is escalating its demands for the immediate return of funds and gold seized by Hungarian authorities, accusing Budapest of “state banditry” and potentially jeopardizing bilateral relations. The dispute centers around a shipment of $40 million, €35 million, and 9 kilograms of gold intended for Ukraine’s Oscchadbank, intercepted by Hungarian authorities on Friday.
Ukrainian Foreign Minister Andrij Szibiha, speaking in Warsaw, stated that the continued detention of the funds – now entering its fourth day – is “at least surprising.” He firmly rejected any notion of ultimatums or coercion, but urged Hungary to cease what he described as “provocations” and refrain from involving Ukraine in its domestic political campaigns, particularly in the lead-up to elections. Szibiha called for a return to “correct, constructive, and neighborly relations.”
The seizure has prompted Ukraine to seek support from its European allies and has initiated legal action by Oscchadbank to recover the assets. Szibiha characterized the actions of Hungarian authorities as akin to “state gangsterism and terrorism,” a strong condemnation that underscores the severity of the diplomatic rift.
According to reports, the interception occurred when Hungarian authorities, including the NAV (National Tax and Customs Administration) and TEK (Counter Terrorism Centre), stopped two armored vehicles originating from an Austrian Raiffeisen Bank branch. The vehicles were transporting the funds to Oscchadbank in Ukraine. The personnel accompanying the shipment were initially detained and subsequently expelled from Hungary, while the assets remain confiscated.
Personnel Released, Funds Still Held
Szibiha confirmed that the Ukrainian personnel involved in the transport have been released and returned to Ukraine, but the funds and gold remain in Hungarian possession. This discrepancy – the release of the individuals but continued detention of the assets – is a key point of contention for Kyiv. The Ukrainian government is actively pursuing diplomatic channels to resolve the issue, appealing to European partners for support and condemnation of Hungary’s actions.
The incident has sparked a wider debate about the security of financial transfers and the potential for political interference in legitimate economic activity. While Hungarian authorities have not yet publicly detailed the specific reasons for the seizure, the Ukrainian side maintains that the funds are legitimate and belong to a state-owned bank.
Hungary Faces Potential Sanctions
Szibiha alluded to the possibility of sanctions against Hungary, warning that Ukraine reserves the right to seize “appropriate measures, including the introduction of sanctions and other restrictive measures.” This threat adds another layer of complexity to the situation, potentially escalating tensions further. The minister also requested that Hungary refrain from dragging Ukraine into its internal political affairs and election campaigns.
The Hungarian government has yet to issue a comprehensive response to Szibiha’s accusations. However, previous statements from Hungarian officials suggest they are investigating the legitimacy of the funds and their intended use.
Austria has stated that there is “nothing special” about the money transfer, noting that its airports are closed, which may explain the land route taken by the funds. HVG reports that Austrian authorities spot no irregularities in the transaction itself.
What Comes Next
The coming days will be critical in determining the future of this dispute. Ukraine is expected to continue its diplomatic efforts, seeking a swift resolution and the return of its assets. The response from Hungary and the reaction of other European nations will be closely watched. The situation remains fluid, with the potential for further escalation if a diplomatic solution cannot be reached.
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