Hungarian authorities seized a significant amount of cash and gold from a Ukrainian bank convoy last week, prompting a demand for its immediate return. Horvath Lawyers, representing Oschadbank, stated on 14/3 that the seized cash and gold bars were assets with clear origins and purposes, fully documented, and unrelated to illicit activities.

On 5/3, Hungarian police intercepted two armored vehicles belonging to Oschadbank as the convoy transported cash and gold from Vienna, Austria, to Kyiv by road. Hungarian authorities subsequently seized approximately 40 million USD in cash, 35 million EUR, and 9 kg of gold bars. They also initially detained 7 bank employees escorting the convoy on suspicion of money laundering.

The detained employees were released on 6/3 and expelled from Hungary. Hungary also returned the armored cash transport vehicles to Ukraine in damaged condition, but all the cash and gold inside had been removed.

The cash and gold on two armored vehicles seized on 5/3. Photo: AFP

The Hungarian government on 9/3 announced it would hold the assets for at least 60 days to investigate their origin and intended use. Officials suggested the money in the vehicles might be linked to illicit activities. Hungarian Foreign Minister Peter Szijjarto questioned whether the assets were "mafia money from the Ukraine war", while Minister of Transport and Construction Janos Lazar hinted the funds could have been funneled into Hungary to finance opposition parties ahead of the country's elections.

Oschadbank's lawyers refuted all allegations, stating that the transfer was a routine operation from Raiffeisen bank in Vienna to Oschadbank's headquarters in Kyiv, transiting through Hungary. Such cash transfers have occurred via Hungary since the conflict began in 2022. They have always been conducted with full disclosure to all parties and were closely monitored by relevant authorities. Oschadbank emphasized that the convoy possessed valid international transport permits and complied with European customs regulations, adding that investigation data showed no links to Ukrainian criminal groups or political financing activities in Hungary.

A branch of Ukraine's state-owned Oschadbank in Kyiv in 2017. Photo: Kyiv Post

Beyond the asset seizure, Hungary also banned the 7 Ukrainian citizens involved in the 5/3 incident from entering the Schengen area and the European Union for three years, citing national security concerns. Oschadbank's legal team argued this decision lacked transparency and could form the basis for a lawsuit at the European Court of Human Rights.

Ukraine's Ministry of Foreign Affairs accused Hungary of violating the Vienna Convention on Consular Relations and the European Convention on Human Rights in its treatment of the detained bank employees. According to Kyiv, they were handcuffed for 28 hours, denied access to lawyers or consular assistance, and one individual with diabetes was hospitalized after not receiving timely medical care.

This incident further exacerbates escalating tensions between Ukraine and Hungary, as bilateral relations have worsened ahead of Hungary's elections. The ruling Fidesz party of Prime Minister Viktor Orban has incorporated anti-Ukraine messages into its election campaign, while Ukrainian President Volodymyr Zelenskyy accused Budapest of supporting Russia.

Oschadbank reiterated its commitment to pursuing legal measures to protect its employees' rights and secure the return of all seized assets.

Thanh Danh (Kyiv Post, DW, Euro News)