Hungary Seizes Oschadbank Funds, Sparks Diplomatic Row with Ukraine

A dispute between Hungary and Ukraine escalated in early March 2026 after Hungarian authorities detained employees of Ukraine’s state-owned Oschadbank and seized a substantial amount of cash and gold. The incident, which Ukraine has condemned as “hostage-taking” and “state terrorism,” has further strained relations between the two countries.

Details of the Detention

On March 5, 2026, Hungarian law enforcement detained seven Oschadbank employees while they were transporting $40 million, €35 million, and 9 kg of gold from Austria to Ukraine. The vehicles were blocked at the premises of Hungary’s Anti-Terrorism Center . Hungary justified the action by citing suspicions of money laundering and alleged the involvement of a “former SBU general” .

Footage released by the Hungarian government on Facebook showed the Oschadbank employees handcuffed and forced face down on the ground, an operation dubbed the “Ukrainian gold convoy” .

Ukraine’s Response

Ukraine strongly protested the detention, characterizing it as “state banditry” and the taking of hostages. Foreign Minister Andrii Sybiha accused Hungary of lawlessness and warned of potential retaliatory sanctions and “other restrictive measures” . Kyiv initially reported that the employees were being held hostage and that the money and valuables had been stolen .

Release and Ongoing Legal Issues

By March 6, 2026, all seven Oschadbank employees had been released and crossed the Ukrainian border . However, the cash-in-transit vehicles and the valuables remain illegally seized by Hungarian authorities .

Oschadbank is pursuing legal action to recover its property, including the two vehicles and the $40 million, €35 million, and 9 kg of gold. The bank is also appealing the restrictive measures imposed on its employees by the Hungarian migration service . Oschadbank maintains the legality of its actions and has submitted all relevant documentation to the National Bank of Ukraine, and plans to commission an independent audit to verify its legal position .

Legal Representation and Investigation

Dr. Lóránt Horváth, lead attorney at E. Rechtsanwalt (Austria), represents Oschadbank and its employees. He confirmed that Hungarian authorities are investigating an “unknown perpetrator” in a money-laundering case and that the detained employees were questioned as witnesses, not formally accused of a crime . Lawyers were initially denied access to the detained employees .

Broader Context

The incident occurs against a backdrop of existing tensions between Ukraine and Hungary, including a dispute over the Druzhba pipeline, which was halted following a Russian strike. Budapest had been seeking repairs to the pipeline and using the threat of blocking EU financial aid to Ukraine as leverage .