London Daily

Focus on the big picture.
Saturday, Aug 29, 2026

US sanctions Hungary-based bank with Russian ties

US sanctions Hungary-based bank with Russian ties

The unusual penalties against a NATO and EU ally mark a new low point in Budapest’s relationship with Washington.

The United States on Wednesday imposed sanctions on a Hungary-based bank linked to Russia, marking a new low point in Hungary’s relationship with Washington.

The U.S. Treasury Department announced the penalties, which will target the International Investment Bank (IIB), a controversial institution located in Budapest with ties to the Russian state. The bank’s presence in Hungary has drawn the ire of Western officials, who fear it could be used for Russian intelligence operations inside Europe.

Speaking to reporters in Budapest on Wednesday afternoon, U.S. Ambassador to Hungary David Pressman said Washington had repeatedly shared information with Hungarian counterparts about how Russia could use the bank to expand its influence — to no avail.

“Unlike other NATO allies previously engaged with this Russian entity,” the ambassador said, “Hungary has dismissed the concerns of the United States government regarding the risks its continued presence poses to the alliance.”

The IIB was originally created in 1970 to foster trade within the Soviet bloc and moved its headquarters from Moscow to Budapest in 2019 despite worries from Hungary’s allies.

“We have concerns,” Pressman said, “about the continued eagerness of Hungarian leaders to expand and deepen ties with the Russian Federation.”

In addition to the broader IIB sanctions, the U.S. will also penalize three individuals affiliated with the bank’s leadership — former board chair Nikolay Kosov, a Russian citizen, and two current senior management officials, Imre Laszlóczki, a Hungarian, and Georgy Potapov, a Russian.

While Hungary is a member of both NATO and the EU, U.S. officials have expressed growing concern over the past decade about Hungarian Prime Minister Viktor Orbán’s moves to centralize power at home and build closer ties abroad with Moscow and Beijing.

But the relationship has deteriorated significantly since the beginning of Russia’s full-scale invasion of Ukraine.

Figures close to Orbán have promoted Russian-style anti-American narratives at home, prompting outrage among Western partners.

Unlike most of its NATO allies, Budapest has maintained a relationship with the Kremlin, with Hungarian Foreign Minister Péter Szijjártó even traveling to Moscow for talks earlier this week on gas shipments, oil transit fees and an ongoing nuclear power plant project. An ongoing campaign in Hungary’s government-controlled press targeting Pressman, the U.S. ambassador, has further strained relations.

And Hungary, together with Turkey, is still blocking Sweden’s NATO bid — a decision that has irritated and confused many allies.

Sweden's parliament voted in favor of joining NATO despite delays by Hungary and Turkey to ratify its membership bid


Pressman insisted the U.S. did not want its ties with Hungary to rupture.

"We're invested in this relationship, because we care about Hungary," he said.

Yet with IIB, the U.S. government said Hungary is essentially allowing Russia to extend its arm into Europe.

“The IIB’s presence in Budapest enables Russia to increase its intelligence presence in Europe, opens the door for the Kremlin’s malign influence activities in Central Europe and the Western Balkans, and could serve as a mechanism for corruption and illicit finance, including sanctions violations,” the Treasury Department said in a statement.

Even after Moscow launched its war in Ukraine, the department added, IIB executives “have coordinated with Russian Federation officials on IIB business."

This is not the first time the U.S. has sanctioned figures linked to Orbán, as allegations of widespread, high-level corruption in Hungary have long worried Washington. In 2014, America banned several Hungarian citizens from entering the U.S., including the then-head of the country’s tax authority.

Washington has also previously sanctioned individuals in Bulgaria, another NATO ally and EU member. In 2021, the U.S. targeted a slew of high-profile Bulgarian power brokers and entities under the Global Magnitsky Human Rights Accountability Act, which targets perpetrators of corruption and human rights abuses around the globe.

The U.S. then followed up with further sanctions against Bulgarian elites earlier this year.

Comments

Oh ya 3 year ago
And this is why the world is dumping the USA and the world reserve currency. The US has turned the dollar into a weapon against countries that make them mad

Newsletter

Related Articles

0:00
0:00
Close
Police Intensify Investigation Into Organised Crime-Linked Violence in Middlesbrough
UK Small Businesses Face Continued Revenue and Tax Pressures, Federation Says
M&G Real Estate Buys West Sussex Affordable Housing Portfolio for £29 Million
Royal Navy Warship HMS Tamar Visits Cambodia for Regional Security Engagement
UK Government Brings Forward Benefit Payments Ahead of August Bank Holiday
Four Men Plead Guilty to Arson Attack on Jewish Community Ambulances in North London
Ofgem Raises Great Britain’s Household Energy Price Cap by Four Percent From October
UK Government Rejects Green Party Call for Artificial Intelligence Datacentre Moratorium
Millions of UK Benefit Recipients Receive Payments Early Ahead of August Bank Holiday
UK Prime Minister Meets Northern Ireland Leaders in Belfast Over Budget Crisis
Crypto Tax Gains Reach One Point Three Eight Billion Pounds Among UK Investors, HMRC Data Shows
UK Corporate Confidence Rises to Highest Level Since March, Lloyds Survey Shows
Mike Ashley Attacks UK Government Business Rates and Cost-of-Living Policies
Scottish Universities Face Two Hundred Million Pound Annual Funding Gap, Report Warns
Entertainment Figures Urge UK Government to Protect People From AI Voice Cloning
Manchester Airports Group Confirms Customer Data Breached in Cyberattack
Seven Charged Over Vandalism at Donald Trump’s Turnberry Golf Resort in Scotland
Nearly 23,000 UK Households Expected to Move Home on Busiest Day of 2026
UK Benefit Payments to Arrive Early Ahead of August Bank Holiday
Reform UK Pledges to Replace GDPR and Cut Tax Administration Red Tape
Andy Burnham Launches Work Experience Plan for One Million Young People Outside Education or Work
Andy Burnham Faces Labour Backlash After Dropping Support for Political Donations Cap
Andy Burnham Announces UK-Wide Summit With Leaders of Scotland, Wales and Northern Ireland
Met Office Warns of Heavy Rain and Flood Risk Across England and Wales After Summer Heat
Bank of England Warns AI Adoption Could Reduce Demand for Automatable Jobs
UK Confirms National Salmonella Outbreak With More Than 200 Cases
UK Airports Handle Record 81 Million Passengers Despite Middle East Disruption
Ofgem Raises UK Energy Price Cap by Four Percent to £1,723
Cyber Attack Hits Customer Data Systems at Manchester, Stansted and East Midlands Airports
TSA Unveils Major Airport-Security Overhaul as It Drops Gold+ Privatization Plan
CIA Chief Warned Russia Against Attacking NATO in Secret Moscow Mission
Raheem Sterling Charged With Dangerous Driving After Lamborghini Crash
The Secret Dolly Parton Kept Until Her Death: "She Was Much Sicker Than She Let On"
Middlesbrough House Fire Kills Woman and Seven-Year-Old Girl
Prince Harry and Meghan Markle Return to UK Amid Renewed Media Attention
Raheem Sterling Charged With Dangerous Driving After London Collision
Greenpeace Threatens Legal Action Over Crown Estate Offshore Wind Leasing
Nvidia Revenue Surges to Ninety-Six Point Two Billion Dollars on Artificial Intelligence Demand
Meta Agrees to Global Youth Safety Changes Following Multi-State Legal Settlement
UK Government Plans Autumn Summit With Scottish, Welsh and Northern Irish Leaders
CMA Caps Veterinary Prescription Fees at Twenty-One Pounds
Thames Water Pilot Records Forever Chemicals at Thirteen Times the Legal Limit
Kent Meningitis Outbreak Reaches Thirty-Four Confirmed Cases
Forty Children Missing From UK Asylum Accommodation Remain Unaccounted For
UK Court Upholds VAT on Private School Fees
US Designates Palestine Action as Foreign Terrorist Organization
UK Approves Massive New Chinese Embassy Complex in London Amid Security Concerns
Prime Minister Andy Burnham Visits Kyiv and Offers Cruise Missile Designs to Ukraine
Glacier Collapse, Not Earthquake, Triggered Deadly Nepal-Tibet Flood
Andy Burnham Drops Plan to Cap Political Donations
×