Tensions between Hungary and Ukraine, already high, have escalated sharply in recent days, with officials from both countries engaging in an increasingly acrimonious exchange of public statements. 

In an X post, Ukrainian Foreign Minister Andrii Sybiha accused Budapest of state terrorism and racketeering following the detention of seven Ukrainian citizens in Hungary. The individuals, employees of the state-owned Oschadbank, were operating cash-transit vehicles travelling between Austria and Ukraine when they were seized. Their condition and whereabouts remain unknown.

"We are talking about Hungary taking hostages and stealing money. If this is the force announced earlier today by [Hungarian Prime Minister] Mr [Viktor] Orban, then this is the force of a criminal gang. This is state terrorism and racketeering," Sybiha wrote, adding that Kyiv had sent an official note demanding the immediate release of its citizens. Ukraine plans to raise the matter with the European Union.

Oschadbank also released a statement saying that GPS data shows that the "vehicles illegally detained" are currently in central Budapest near a Hungarian law enforcement facility.

The vehicles were transporting cash and valuables under an international agreement with Raiffeisen Bank, in line with European customs and international transport rules. The cargo included $40mn, €35mn and 9kg of gold. Oschadbank has demanded the immediate release of its staff and the return of the seized assets to Ukraine.

The latest development comes after Hungary's veteran leader told business leaders on March 5 that Hungary would "forcefully" push for the resumption of oil deliveries, which have been halted since the end of January.

At the annual kick-off event organised by the business chamber MKIK, Orban said that "We will force the Ukrainians to resume crude deliveries. Not by bargaining, not by consenting, not by compromising, but through our strength," he said, adding that Hungary will use "political and financial means."

"There is indeed a tense situation, with the Ukrainians imposing an oil blockade on Hungary, which we are working to counter, and we must break this oil blockade at all costs. We cannot agree with the Ukrainians on this because they are blackmailing us and trying to coerce us," he said.

Orban noted that Ukraine's Association Agreement with the European Union prohibits Ukraine from impeding the energy supply of any EU member state.

Hungarian officials stressed that Budapest does not wish to cut off its electricity deliveries to Ukraine, a countermeasure for which Slovakia has opted in view of the large ethnic Hungarian community in western Ukraine, but Budapest will continue to block the €90bn loan to Ukraine, and it will weigh legal steps, he added.

Budapest has accused Kyiv of deliberately delaying deliveries to create an energy crisis, and of siding with Hungary's opposition. The Hungarian government turned to the European Commission to pressure Ukraine to reopen the pipeline, which Budapest claims has already been restored after a Russian drone attack.

Pressure is growing on Kyiv to allow inspectors to examine a damaged section of the Druzhba pipeline as several pro-Ukraine governments and the European Commission have urged Kyiv to permit independent inspectors to visit the site and confirm that repair work is underway, according to five EU diplomats and officials.

Ukrainian President Volodymyr Zelensky also made headlines with comments that Hungarian opposition leader Peter Magyar also condemned, and which analysts say could give new momentum to Orban's anti-Ukraine rhetoric in the election campaign.

"We hope that a certain person in the EU will not block the €90bn or the first instalment of it, and that Ukrainian soldiers will be able to get their weapons. Otherwise, we will give this person's address to the armed forces, so they can call him and talk to him in their own language," said Ukrainian President Volodymyr Zelenskiy, effectively threatening Viktor Orban at a press conference. Zelenskiy spoke to reporters after Orban said that Hungary will break the Ukrainian oil blockade by force.

"It is an entirely new situation in Europe for the president of a European country to threaten the prime minister of a Nato and EU member state with death or murder," Hungarian Foreign Minister Peter Szijjarto said in a statement, while political analysts said the latest comment by the Ukrainian leader provides further momentum to Orban's campaign, which is focused on security issues instead of the cost-of-living crisis. Magyar, on his campaign tour, said, "No foreign head of state may threaten any Hungarian citizen!"

"On behalf of Hungary's future government, I reject in the strongest possible terms the blackmail and threats from Presidents Zelenskiy and Putin!"

Tensions between Hungary and Ukraine escalated following the shutdown of the Druzhba oil pipeline at the end of January. The halt prompted Hungarian oil company MOL to seek government approval in mid-February to release Hungary's strategic oil reserves.

Two days later, Szijjarto announced Hungary would suspend diesel deliveries to Ukraine until crude flows resumed, and shortly after, he extended the suspension to a €90bn EU loan for Kyiv. The dispute intensified last week, with Orban deploying troops to key energy facilities and calling on Zelensky to "change his anti-Hungarian policy".

Orban claimed Ukraine had imposed an oil blockade, citing satellite images suggesting the pipeline could be restarted. Zelenskiy countered that the pipeline had been destroyed, repairs would take time, and normal relations could resume only after Orban leaves office.

The government announced on March 5 that it had set up a five-member delegation to inspect the Druzhba pipeline if Ukraine does not resume crude deliveries within three working days. The team includes two MOL experts and two state officials.