Ukraine’s central bank governor Andriy Pyshny accused the Hungarian government of “international blackmail” after it voted positively for a law that allows seizure of millions of cash and gold owned by Ukraine’s state-owned Oschadbank.
In a statement on Tuesday, March 10, the National Bank of Ukraine (NBU) chair Pyshny stated that the detention of $79 million in cash and gold belonging to Oschadbank has transitioned from a legal dispute into a “staged political show.”
According to Pyshny, the Hungarian government rushed through a resolution, which retroactively labels a standard banking transaction as a “threat to national security.” This shipment, consisting of $40 million, €35 million, and 9kg of gold, was transported from Raiffeisen Bank International AG in Vienna to Kyiv when it was taken by Hungarian authorities on March 5.
Pyshny noted that this new resolution effectively removes the asset seizure from the domain of criminal proceedings, where staff were questioned only as witnesses, and places it under the direct control of the Hungarian government. The funds are now expected to be frozen for at least 60 days.
“We are not dealing with a legal process. We are being subjected to political pressure,” head of the NBU stated on Facebook. “The news out of Hungary backs up what has been clear from the start: the seizure isn’t about upholding the rules or ensuring security, it’s about staging a political show underpinned by nothing but lawlessness.”
He noted a direct correlation between the seizure and broader diplomatic tensions. On the same day the assets were legally frozen, the Hungarian National Assembly passed a resolution refusing to support Ukraine’s accession to the EU and opposing further financing for Ukraine’s military needs.
The dispute began when Hungary’s Counter-Terrorism Centre (TEK) intercepted two Oschadbank armored vehicles near Budapest. Seven Ukrainian employees were deported after 28 hours in custody of the Ukrainian authorities, but the Ministry of Foreign Affairs of Ukraine (MFA) reported gross violations of international law during their detention. The lawyer for the detainees said in an interview with Kyiv Post that no one was allowed into Hungary’s Counter-Terrorism Centre (TEK) building. At the moment, the physical assets remain in Hungary.
Hungarian authorities claimed the seizure was part of a money-laundering probe against an “unknown perpetrator.” However, the NBU maintains that all permits and customs clearances were for the routine transfer.
Ukraine has now escalated the matter to European partners.
“We are communicating with other partners and hope for an impartial and transparent study with relevant European conclusions and results that could demonstrate commitment to EU sovereignty rights in practice,” Pyshny said.
Kyiv Post made a request for comment to the European Commission to find out further details, but received no answer at the time of publication.