Ukraine stops cash transport through Hungary, calls Druzhba pipeline delegation “tourists”

Several Ukrainian banks have suspended or reconsidered their cash transport routes through Hungary and Slovakia after Hungarian authorities seized a large shipment belonging to a Ukrainian state bank last week.

According to Ukrainian media reports citing banking industry sources, the incident has prompted financial institutions to search for alternative routes to bring foreign currency into Ukraine from Europe.

Since the start of Russia’s full-scale invasion in 2022, large volumes of cash have been transported to Ukraine by armoured vehicles along land routes through Central Europe, replacing earlier air transport. One of the main partners in these operations has been Austria’s Raiffeisen Bank, with shipments typically travelling from Austria through Hungary or Slovakia.

Millions in cash and gold seized

The shipment in question belonged to the Ukrainian state savings bank Oschadbank. During an operation involving Hungary’s Counter-Terrorism Centre (TEK), the convoy was stopped and later seized by the Hungarian tax authority (NAV).

According to Ukrainian officials and Raiffeisen Bank, the convoy was part of a regular interbank cash delivery service moving through Hungarian territory.

Authorities reportedly confiscated assets worth tens of millions: EUR 40 million, USD 35 million, and around nine kilograms of gold.

Hungarian authorities launched an investigation on suspicion of money laundering.

Vehicles to be returned

NAV informed Oschadbank’s legal representatives on Wednesday that the seized armoured vehicles would be returned following last week’s operation involving the bank’s employees.

The seizure, however, has already disrupted the system Ukrainian banks rely on to supply foreign currency during the war.

Banks consider alternatives

Banking sources say Ukrainian financial institutions are now reviewing logistics options and may temporarily delay direct cash deliveries from Europe. Some banks have instead begun purchasing foreign cash directly from the National Bank of Ukraine.

In the past two days alone, Ukraine’s central bank reportedly offered USD 200 million and EUR 115 million in cash to banks. Demand has been moderate but noticeably higher than usual.