Ukraine–Hungary Dispute Over Oschadbank Cash and Oil Transit: What Is Happening
Relations between Ukraine and Hungary sharply deteriorated after the detention of armored cash-in-transit vehicles belonging to the state-owned Oschadbank in Budapest. The situation quickly evolved from a financial episode into a political conflict that touched upon the transit of Russian oil, the European Union’s sanctions policy, and the region’s energy security.
Time for Action analyzed how the detention of cash collectors turned into a diplomatic dispute and why the events surrounding the seized money and gold are closely connected with energy policy.
Detention of cash collectors and seizure of funds
On March 5, two armored vehicles of a cash-in-transit service were stopped in Hungary. The vehicles carried employees of the state-owned Oschadbank and were transporting foreign currency and banking metals. The total value of the assets in the vehicles amounted to:
- 40 million US dollars
- 35 million euros
- 9 kilograms of gold
Seven employees of the cash collection team were detained. Hungary’s Tax and Customs Administration stated that the detention was based on suspicions of money laundering. The Ukrainian side insisted that the transfer was carried out within the framework of an international agreement between the Austrian Raiffeisen Bank and the Ukrainian Oschadbank and that the shipment had been оформлено in accordance with European customs procedures. Oschadbank emphasized:
“The cargo was documented in accordance with international transportation rules and the applicable European customs procedures.”
After diplomatic contacts, the detained employees were released and returned to Ukraine. However, the money and gold remained under arrest.
Draft law in the Hungarian parliament
Shortly after the incident, the parliamentary faction of the ruling party Fidesz proposed adopting a special bill concerning the seized money and gold. The head of the faction, Máté Kocsis, suggested introducing legislation that would allow the assets to remain under arrest until the investigation is completed. This move triggered a strong reaction from Kyiv. Ukraine’s Minister of Foreign Affairs Andrii Sybiha stated:
“After stealing money from a Ukrainian state bank they are now proposing a bill to ‘legalize’ the illegal seizure. This is a factual admission that Hungary’s actions have no legal basis. We will hold everyone involved accountable not only for the theft of the money but, first and foremost, for the cruel treatment of seven Ukrainian citizens.”
Ukrainian diplomacy announced that it would appeal to the European Union to provide a legal assessment of Hungary’s actions.
The Hungarian position
Budapest explains the situation as the need to verify the origin and purpose of the large amounts of cash being transported. Hungarian Foreign Minister Péter Szijjártó raised a public question:
“We are still waiting for an answer: why were $900 million and €420 million in cash transported through Hungary? What was it used for and in whose interests? How much of it was spent in Hungary and for whose benefit?”
Thus the Hungarian authorities are attempting to shift the discussion toward financial oversight and the possible investigation of unlawful financial activity.
Political tension between Kyiv and Budapest
The incident involving the seized money occurred during a period of serious tension between Ukraine and Hungary.
On March 5, Ukrainian President Volodymyr Zelensky suggested giving Ukrainian soldiers the phone number of “the person who is blocking assistance from the European Union.” The remark referred to Hungarian Prime Minister Viktor Orbán.
Orbán responded by publishing a video stating that he could use force to make Ukraine restore the transit of Russian oil through the Druzhba pipeline.
Sybiha commented on this statement:
“If this is the ‘force’ that Mr. Orbán announced today, then it is the force of a criminal group. This is state terrorism and racketeering.”
The Druzhba pipeline at the center of the dispute
The conflict is linked to the situation surrounding the Druzhba oil pipeline, which runs through Ukraine and is used to transport Russian oil to Hungary and Slovakia.
On January 27, 2026, Russian forces attacked an energy infrastructure facility in the city of Brody in the Lviv region. The strike damaged equipment associated with the operation of the pipeline.
The fire at the site was extinguished over ten days. Transformers, cable systems, and other equipment were damaged.
Since the start of the full-scale war, facilities connected with the Druzhba infrastructure have been attacked nearly twenty times.
Repair work has repeatedly been carried out under conditions of ongoing strikes.
Pressure from Hungary and Slovakia
After the infrastructure damage, Budapest and Bratislava demanded that Kyiv restore the transit of Russian oil.
On February 18, Hungary and Slovakia temporarily suspended diesel fuel supplies to Ukraine.
Szijjártó stated that shipments would not resume until oil transit through the Druzhba pipeline is restored.
Hungarian Prime Minister Viktor Orbán also threatened to block decisions of the European Union related to support for Ukraine.
This includes a €90 billion EU credit support package.
During the same period Slovakia suspended emergency electricity supplies to Ukraine.
Both countries are also delaying the approval of a new European Union sanctions package against Russia.
Ukraine’s position
Kyiv states that the disruption of transit is the result of infrastructure damage caused by Russian attacks.
Ukrainian President Volodymyr Zelensky said that supplies could be restored within about one to one and a half months.
He also noted that the decision may depend on whether certain EU countries continue to block financial assistance to Ukraine.
Possible role of the European Union
The European Union is considering allocating funds to repair the damaged sections of the pipeline.
The financing could come from existing financial support programs for Ukraine.
The European Commission is also considering sending an assessment mission to evaluate the scale of the damage.
Officials in Brussels are concerned that even after repairs the infrastructure could again become a target of Russian attacks.
An additional factor cyberattacks
Amid these developments, Ukraine’s banking sector has faced a new wave of cyberattacks.
State-owned Oschadbank temporarily suspended its online services after detecting a suspected DDoS attack.
Other banks have also reported hacking attempts and large-scale attacks targeting financial infrastructure.
A conflict that extends beyond finance
The incident involving the seized money and gold has become only one element of a broader confrontation between Kyiv and Budapest.
Energy security, the transit of Russian oil, sanctions policy, and domestic political dynamics within the European Union have all become part of the dispute.
Further developments will depend on the outcome of the Hungarian investigation, diplomatic negotiations, and decisions made by European institutions.
The situation surrounding the seized funds has already turned into a symbol of a wider confrontation in which finance, energy, and politics are tightly intertwined.
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Hungary and Slovakia Suspend Diesel Supplies: Will Ukraine Face Fuel Shortages? 
Slovakia Threatens to Suspend Emergency Electricity Support to Ukraine 
Russian Oil Transit as Leverage Against Ukraine: What Budapest and Bratislava Want 
Propaganda in Hungary: How Orbán Uses Zelensky’s Image and Manipulates Public Opinion
