BUDAPEST, March 12 (Reuters) - Hungary returned two seized armoured bank vehicles to Ukraine on Thursday but withheld cash and gold worth approximately $82 million, citing an investigation into
Hungary returns seized Ukrainian bank vehicles, withholds cash and gold
Hungary-Ukraine Asset Dispute Intensifies
BUDAPEST, March 12 (Reuters) - Hungary returned two seized armoured bank vehicles to Ukraine on Thursday but withheld cash and gold worth approximately $82 million, citing an investigation into alleged money laundering, a move 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.
Background to the Seizure
Kyiv accused Budapest of taking the bank employees hostage in order to pressure Ukraine into restarting suspended oil shipments. It said the employees were engaged in a legitimate transfer.
Those detained were expelled by Hungary and crossed into Ukraine on Friday.
Condition and Return of Vehicles
Ukraine's Oschadbank said the vehicles were turned over to diplomats and customs officers but that they had sustained some damage which would be formally assessed once they were back in Ukraine.
The bank said the cash and gold remained "illegally held in Hungary."
Ukrainian Demands and Legal Response
Ukraine has demanded the return of the seized assets, with Foreign Minister Andrii Sybiha on Sunday describing Hungary's actions as an "unprecedented act of state banditism and racketeering."
Statements from Legal Representatives
The detainees' lawyer, Lorant Horvath, told reporters on Thursday 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.
Hungarian Government Actions
Hungary's parliament passed a law proposed by Orban's Fidesz Party on Tuesday, 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.
Political Context
The tensions come as 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.
Impact on EU Relations
Orban has also vetoed new EU sanctions on Moscow as well as a huge loan for Ukraine over the oil dispute.
(Reporting by Anita Komuves and Krisztina Fenyo; Editing by Andrei Khalip, Ron Popeski and Matthew Lewis)
