Hungary’s ruling Fidesz party of Prime Minister Viktor Orbán has submitted a bill to parliament that would allow tax authorities to hold onto confiscated Ukrainian assets for the duration of an ongoing investigation. Kyiv’s response is blunt: this is blackmail.

Stopped at the Border

It all began on Thursday, March 6, when Hungarian authorities stopped two vehicles belonging to Ukraine’s state-owned Oschadbank along with seven of its employees. They were transporting 40 million dollars, 35 million euros, and 9 kilograms of gold through Hungarian territory — a shipment en route from Austria to Ukraine.

On Friday, Hungarian authorities released the detained bank employees but opened an investigation into suspected money laundering. Several days later, Fidesz’s bill appeared in the Hungarian parliament, which would allow tax authorities to seize the detained assets for the duration of the proceedings — in practice potentially meaning their long-term freezing.

Ukraine: The Transport Was Legal

The Governor of the National Bank of Ukraine, Andriy Pyshny, firmly rejected the Hungarian allegations. He argued that the cash and gold had been cleared in full compliance with international regulations, and that transporting funds overland between banks is standard practice under the conditions of an ongoing full-scale war.

Ukraine’s Foreign Minister Andriy Sybiha went even further, calling Budapest’s actions „part of blackmail and an election campaign.” He pointed to Hungary’s parliamentary elections scheduled for April, suggesting that Orbán is deliberately escalating tensions with Kyiv in order to mobilize his domestic electorate.

Orbán vs. Ukraine — An Old Conflict, A New Chapter

The transport incident is the latest chapter in a long-running dispute between Budapest and Kyiv. Since the beginning of Russia’s invasion, Hungary has consistently blocked or obstructed Western support for Ukraine within the EU and NATO, while simultaneously maintaining friendly relations with the Kremlin.

In recent weeks, tensions between the two countries have been further inflamed by the breakdown of the Druzhba pipeline, which has been out of operation since the end of January following a Russian attack. It was via this route — in transit through Ukraine — that Russian oil reached Hungary and Slovakia, two countries heavily dependent on Moscow for their energy needs. Budapest and Bratislava are accusing Kyiv of deliberately blocking the transit; Ukraine insists the pipeline is being repaired.

Playing Politics Before the Election

Observers note that the Fidesz bill emerged at an exceptionally sensitive moment — just weeks before Hungary’s parliamentary elections. The escalation of anti-Ukrainian rhetoric and a demonstrative confrontation with Kyiv fit neatly into Orbán’s well-tested strategy of building support on a narrative of defending Hungarian interests against external threats.

For Ukraine, fighting for survival on the front lines and seeking Western backing, any destabilization on the flank of European allies carries additional costs — both political and reputational. The affair of the Ukrainian cash and gold may therefore be something more than a mere border incident: it is yet another signal that Budapest remains the most unpredictable player within the European Union.