The European Central Bank has warned that Hungary's seizure of $40 million in cash and gold en route to Ukraine threatens the euro's credibility as an international currency. Ukraine's central bank raised concerns after Hungarian authorities intercepted vehicles carrying the funds, which were being transported under contract between Austria's Raiffeisen Bank International and Ukraine's Oschadbank in compliance with international customs rules.

ECB President Christine Lagarde has explicitly highlighted the risks this situation poses to the euro's standing and plans to raise the matter directly with authorities in Budapest and Brussels. The incident comes amid Hungary's blockade of €90 billion in EU support for Ukraine and ahead of elections where Prime Minister Viktor Orbán has made hostility toward Kyiv a centerpiece of his campaign.

Oschadbank has suspended cash imports into Ukraine following the incident and is working to find new secure routes. The bank had supplied 39 Ukrainian lenders with $1 billion and €800 million in cash last year, a routine operation since Russia's invasion forced Ukraine to close its airspace.