US Sanctions Individuals In Hungary

By Stefan J. Bos, Chief International Correspondent Worthy News

BUDAPEST (Worthy News) – The United States lashed out at Hungary for its “eagerness” to have friendly ties with Moscow and imposed sanctions on three individuals of a Budapest-based Russian-controlled bank.

The U.S. Treasury Department designated for sanctions three current or former executives of the International Investment Bank (IIB): Russian nationals Nikolay Kosov, Georgy Potapov, and Hungarian Imre Lászlóczki.

The three reportedly coordinated with Russian officials on handling the IIB following Moscow’s invasion of Ukraine. Lászlóczki, currently a deputy head of IIB, earlier served as Hungary’s Ambassador to Azerbaijan and Kazakhstan.

“Hungary’s choice to continue to host the IIB, the Russia-controlled entity, within the European Union and NATO [military alliance] is a cause for enormous concern,” said the U.S. ambassador to Hungary, David Pressman. “We have concerns about the continued eagerness of Hungarian leaders to expand and deepen ties with the Russian Federation,” Pressman added.

They are among 50 individuals and institutions related to Russia, he explained. Wednesday’s sanction move announced by Pressman also came after hardline Hungarian Prime Minister Viktor Orbán referred to the United States as a “foremost adversary.”

Orbán allegedly made the remark on a February 22 “political technique session” with political associates, according to leaked classified documents.

BROADER IMPLICATIONS

The U.S. Central Intelligence Agency (CIA) said the inclusion of the United States in Orbán’s “checklist of prime three adversaries constitutes an escalation of the extent of anti-American rhetoric in his discourse.”

The IBB controversy underscored the tense relations between the U.S. and Hungary, both NATO military alliance members, as Budapest seeks closer ties with Moscow and China.

The bank, which relocated from Moscow to Budapest in 2018, describes itself as a multilateral lender to boost economic ties between its members, mostly former communist states such as those in Eastern Europe.

But critics said the relocation to Hungary — the EU member with the closest ties to Moscow — was dangerous to the U.S. and its allies. A group of American senators said the IBB is “widely seen as an arm of Russia’s secret services.”

The bank has rejected the allegation. Yet, most of IIB’s EU backers — the Czech Republic, Slovakia, Bulgaria, and Romania — left or withdrew from the bank after Russian President Vladimir Putin sent his forces into Ukraine a year ago.

With assets frozen, the bank faces a “looming default,” the U.S. Treasury said. Hungary is the sole remaining EU member.

ENERGY DEALS

Besides supporting the bank, Hungary’s foreign minister sealed deals this week with Russia on expanding nuclear energy, natural gas, and oil supplies despite Moscow’s invasion of Ukraine.

He made the move while the EU tried to reduce its dependency on Russian energy, even though that resulted in millions struggling to pay for their utilities.

The government defended the deals saying Hungary needs Russian oil and natural gas as they provide 80-85 percent of the country’s energy needs.

Washington has also condemned Hungary’s decision to delay ratification of Sweden’s entry into NATO, several sources said. Legislators of the ruling Fidesz party had objected to Sweden’s criticism about Hungary’s perceived lack of democratic values.

Under NATO rules, all member states have to agree on expansion.

The EU shares U.S. concerns about Hungary’s policies: Brussels froze billions of euros in EU funding to Hungary over rule-of-law concerns and the government’s perceived lack of democratic credentials.

Under Orbán, some journalists, including a Worthy News reporter, were effectively blocklisted, impacting their ability to operate freely, while several media, the judiciary, and other previously independent institutions faced government control.

Last year, the European Parliament said Hungary was no longer a “full democracy,” charges the government vehemently denies.

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