President Volodymyr Zelenskyy announced on Wednesday that Hungary had returned cash and gold confiscated from employees of Ukraine's state-owned Oschadbank in March, ending a diplomatic standoff that had strained relations between Kyiv and Budapest.
"An important step in relations with Hungary – today, the funds and valuables of Oschadbank that were seized by Hungarian special services in March of this year were returned," Zelenskyy said in a statement. "I am grateful to Hungary for its constructive approach and civilized step."
The incident began when Hungarian police raided a convoy of cash carriers near Budapest, seizing $40 million, €35 million, and 9 kg of gold. The following day, Hungary expelled seven Ukrainian nationals accompanying the transport and launched a money laundering investigation.
Lawyers from Horváth Lawyers, representing Oschadbank and its employees in Hungary, told Euronews that the vehicles were conducting a routine transfer from Austria's Raiffeisen Bank to Oschadbank's headquarters in Kyiv. Ukraine's foreign minister, Andrii Sybiha, accused Hungary of "kidnapping and state terrorism," while his Hungarian counterpart, Péter Szijjártó, suggested the funds could be linked to criminal activities, asking whether it was "the money of the Ukrainian war mafia."
A Shift in Budapest's Stance
The return of the assets coincides with a broader recalibration of Hungary's foreign policy under incoming Prime Minister Péter Magyar, who won a parliamentary election on 12 April, ending Viktor Orbán's 16-year tenure. Orbán, widely regarded as the most pro-Russian leader in the European Union, had repeatedly used Hungary's veto power to block financial assistance to Ukraine and stall its EU membership.
Magyar, seen as a more moderate successor, offered last week to meet Zelenskyy to "open a new chapter in bilateral relations" and address a long-running dispute over the rights of Ukraine's ethnic Hungarians. The shift has already yielded tangible results: late last week, the European Union gave final approval to a €90 billion loan for Ukraine after Hungary lifted its veto, ending a two-month impasse.
The breakthrough came two days after Zelenskyy announced that the Druzhba pipeline, which carries cheap Russian oil to Hungary and Slovakia, had been repaired and could resume operations. The interruption of oil flows through Druzhba was at the core of Orbán's decision to veto the loan in February, a move that outraged other EU leaders, who condemned it as an "unacceptable" attempt to "blackmail."
Magyar has signaled a desire for a reset with Brussels, including evaluating the possibility of joining the eurozone. His meeting with Italian Prime Minister Giorgia Meloni, reported by European Pulse, underscores his efforts to build new alliances within the EU.
The return of the Oschadbank assets marks a concrete step in this thaw, though questions remain about the ongoing money laundering investigation in Hungary. For now, Kyiv views the move as a positive signal, with Zelenskyy thanking "everyone on Ukraine’s team who fought for a fair decision."
