Hungary returns a seized cash and gold shipment worth $82 million to Ukraine

BUDAPEST, Hungary -- A shipment of Ukrainian cash and gold worth around $82 million that Hungary seized earlier this year has been returned to Ukraine's state Oschadbank, President Volodymyr Zelenskyy said Wednesday.

The seizure of the valuables, which were being transported through Hungary by two armored cars when Hungarian counter-terrorism authorities detained them on March 5, caused outrage in Ukraine, where officials accused Hungary's pro-Russian government of acting illegally, and of using the seizure as a tool in Prime Minister Viktor Orbán’s anti-Ukraine election campaign.

The neighboring countries had already been in a bitter feud over Hungary’s access to Russian oil through a pipeline that crosses Ukrainian territory.

But on Wednesday, Zelenskyy wrote on social media that the return of the valuables represented “an important step in relations with Hungary” after Orbán was defeated in a landslide election last month that has raised hopes the incoming government will pursue a less antagonistic policy toward Kyiv.

“I am grateful to Hungary for its constructive approach and civilized step,” Zelenskyy wrote. “I thank everyone on Ukraine’s team who fought for a fair decision and defended the interests of our state and our people.”

At the time of the seizure, Hungarian authorities said they suspected money laundering, and Orbán ordered that the shipment — which included $40 million and 35 million euros in cash, as well as 9 kilograms (19.8 pounds) of gold — be held in custody for up to 60 days while his country’s tax authority investigated.

Hungary’s tax authority did not immediately respond to a request for comment.

The Ukrainian bank employees traveling with the shipment were held by Hungarian authorities for over 24 hours before being expelled from the country.

Ukrainian officials said the shipment was a routine transfer of assets between state banks, and accused Orbán’s government of blackmailing Kyiv to try and pressure it to restore interrupted shipments of Russian oil through the Druzhba pipeline, which had been damaged by a Russian drone strike.

But Orbán ordered the tax authority to determine the origin, destination and intended use of the shipment, as well as the identity of the seven expelled Ukrainians “and their possible links to criminal or terrorist organizations.”

Orbán also suggested without providing evidence the shipment may have been intended to fund his primary political opponent, the center-right Tisza party, which ultimately won with a two-thirds majority in parliament during last month's election.

Orbán's government had blocked a major, 90-billion euro ($106-billion) European Union loan to Ukraine over the interruption of Russian oil via the Druzhba. But once those flows resumed following Orbán's electoral defeat, Hungary lifted its veto and allowed the loan to go through.