Hungary’s government on Monday evening adopted a decree authorizing the seizure of cash and gold taken from armored vehicles belonging to Ukraine’s state-owned Oschadbank, according to a copy of the decision obtained by European Pravda.
The decree, signed by Prime Minister Viktor Orban, provides a legal framework for the confiscation of the funds following last week’s incident in which Hungarian authorities stopped a Ukrainian cash transport convoy.
According to the document, Hungarian authorities seized €35 million and $40 million in cash, as well as nine gold bars weighing one kilogram each.
Hungarian government cites security concerns
The government argued that the “unusually large amount of cash and gold transported through Hungarian territory” posed potential national security concerns and that the purpose of the funds and the legal basis for transporting them had not been clarified during the inspection.
The decree states that the assets will be treated as confiscated while Hungary’s National Tax and Customs Administration conducts an investigation lasting up to 60 days.
Hungarian authorities said the probe aims to determine the identity of the couriers, the origin and destination of the assets, and whether the funds could be linked to criminal or terrorist organizations or used in activities affecting Hungary’s national security.
Ukrainian officials and European banking representatives have rejected Budapest’s claims, saying that since Russia’s full-scale invasion in 2022, transporting cash over land has become one of the few viable options for Ukrainian banks due to restrictions on air transport.
Hungary’s government has also suggested, without providing evidence, that the funds might have been intended to finance Hungary’s political opposition.
Tensions between Kyiv and Budapest escalate
The incident sharply escalated tensions between Kyiv and Budapest. Last week, Hungarian authorities detained seven Ukrainian citizens transporting roughly $82 million in cash and gold, accusing them of money laundering.
Ukraine described the incident as theft and demanded the immediate return of the funds. Foreign Minister Andrii Sybiha called Hungary’s actions “an unprecedented act of state banditism,” while Kyiv summoned Hungary’s ambassador over the detention of Ukrainian citizens.
Although the detainees were later expelled from Hungary, the seized money and gold remain in the country pending the investigation.