As Hungary enters the final month of its election campaign, tensions with Ukraine are escalating daily. Hungary’s ruling Fidesz party has centered its campaign on anti-Ukraine messaging, alleging potential interference in the election and even direct threats to Hungary. Ukrainian President Volodymyr Zelenskyy, in turn, has accused Hungarian Prime Minister Viktor Orban of supporting Russia in all ways “short of attacking with missiles or drones.”
The dispute comes as Russian oil transfers to Hungary via Ukraine remain interrupted, while Hungary is simultaneously blocking much-needed EU aid to Ukraine.
The Hungarian Job: Law Enforcement or ‘Banditry’?
On March 5, Hungarian special forces intercepted two security vans belonging to Ukraine’s Oschadbank while transporting $80 million (€70 million) in euro and dollar banknotes and 9 kilograms (20 pounds) of gold from Vienna to Ukraine. Seven Ukrainian citizens were temporarily detained. Hungarian authorities stated they acted on suspicion of money laundering.
Ukraine’s Oschadbank and its Austrian business partner maintain the transport was legal and routine, prompting President Zelenskyy to accuse Hungary of “banditry.”
Millions in Cash and Gold Seized
The detained Ukrainians have since been released and expelled from Hungary. While the vans were returned, the $80 million and 9 kilograms of gold remain in Hungarian custody. A government decree issued on March 9 ordered the assets to be held for at least 60 days to investigate their “origin, destination, use and purpose.”
The following day, the Hungarian parliament—where Orban’s Fidesz party holds a supermajority—passed a law supporting the decree.
Legal Experts Question Hungary’s Allegations
Concerns have been raised regarding the legality of the asset seizure and the money-laundering accusations. When contacted by DW, Hungarian authorities did not respond. Miklos Ligeti, head of legal affairs at the Budapest branch of Transparency International, expressed skepticism about the money-laundering claims, stating that no attempt was made to conceal the money’s origin.
Legal experts also suggest the Hungarian government may be attempting to retroactively legitimize its actions.
A Violation of EU Rule-of-Law Principles?
Julia Pocze, a legal researcher at the Brussels-based Centre for European Policy Studies, believes Hungary’s actions violate EU principles on the rule of law, stating that a legal basis cannot be created retroactively to justify the seizure. The European Commission stated it is “closely” monitoring the situation.
The current tensions stem from the suspension of Russian oil deliveries to Hungary via Ukraine following a Russian attack on the Druzhba pipeline in late January. Budapest accuses Ukraine of deliberately disrupting oil supplies to interfere with the election.
Tit for Tat
Hungary’s Transport Minister Janos Lazar stated that the asset seizure was “not independent of the closing of the pipeline,” suggesting a retaliatory measure. Transparency International’s Miklos Ligeti characterized this as evidence the government is “playing a political game.” Ukraine blames repair delays on the ongoing war and has expressed reluctance to repair the pipeline without a ceasefire.
With Orban’s Fidesz party trailing in polls, the government is increasingly portraying Ukraine as a threat to Hungary’s energy security and safety. Orban’s government has dispatched a “fact-finding mission” to Ukraine to assess the Druzhba pipeline, but Ukraine is treating the members of the mission as “tourists.”
As both sides escalate rhetoric, the status of the Druzhba pipeline, Ukraine’s seized assets, and the EU’s planned defense loan to Ukraine remain uncertain.
Frequently Asked Questions
What prompted the seizure of assets from Ukraine’s Oschadbank?
Hungarian authorities stated they acted on suspicion of money laundering when they intercepted two security vans transporting cash and gold.
What has been the response from Ukraine to the seizure?
Ukrainian President Volodymyr Zelenskyy accused Hungary of “banditry” in response to the seizure of the assets.
What is the connection between the seized assets and the interrupted oil deliveries?
Hungary’s Transport Minister Janos Lazar indicated the asset seizure was linked to the suspension of Russian oil deliveries via Ukraine, suggesting a retaliatory measure.
Given the heightened tensions and ongoing election campaign, what impact might this dispute have on the future relationship between Hungary and Ukraine?
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