London Daily

Focus on the big picture.
Monday, Dec 08, 2025

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
"The Great Filtering": Australia Blocks Hundreds of Thousands of Minors From Social Networks
Mark Zuckerberg Pulls Back From Metaverse After $70 Billion Loss as Meta Shifts Priorities to AI
Nvidia CEO Says U.S. Data-Center Builds Take Years while China ‘Builds a Hospital in a Weekend’
Indian Airports in Turmoil as IndiGo Cancels Over a Thousand Flights, Stranding Thousands
Hollywood Industry on Edge as Netflix Secures Near-$60 Bln Loan for Warner Bros Takeover
Drugs and Assassinations: The Connection Between the Italian Mafia and Football Ultras
Hollywood megadeal: Netflix acquires Warner Bros. Discovery for 83 billion dollars
The Disregard for a Europe ‘in Danger of Erasure,’ the Shift Toward Russia: Trump’s Strategic Policy Document
Two and a Half Weeks After the Major Outage: A Cloudflare Malfunction Brings Down Multiple Sites
UK data-regulator demands urgent clarity on racial bias in police facial-recognition systems
Labour Uses Biscuits to Explain UK Debt — MPs Lean Into Social Media to Reach New Audiences
German President Lays Wreath at Coventry as UK-Germany Reaffirm Unity Against Russia’s Threat
UK Inquiry Finds Putin ‘Morally Responsible’ for 2018 Novichok Death — London Imposes Broad Sanctions on GRU
India backs down on plan to mandate government “Sanchar Saathi” app on all smartphones
King Charles Welcomes German President Steinmeier to UK in First State Visit by Berlin in 27 Years
UK Plans Major Cutback to Jury Trials as Crown Court Backlog Nears 80,000
UK Government to Significantly Limit Jury Trials in England and Wales
U.S. and U.K. Seal Drug-Pricing Deal: Britain Agrees to Pay More, U.S. Lifts Tariffs
UK Postpones Decision Yet Again on China’s Proposed Mega-Embassy in London
Head of UK Budget Watchdog Resigns After Premature Leak of Reeves’ Budget Report
Car-sharing giant Zipcar to exit UK market by end of 2025
Reports of Widespread Drone Deployment Raise Privacy and Security Questions in the UK
UK Signals Security Concerns Over China While Pursuing Stronger Trade Links
Google warns of AI “irrationality” just as Gemini 3 launch rattles markets
Top Consultancies Freeze Starting Salaries as AI Threatens ‘Pyramid’ Model
Macron Says Washington Pressuring EU to Delay Enforcement of Digital-Regulation Probes Against Meta, TikTok and X
UK’s DragonFire Laser Downs High-Speed Drones as £316m Deal Speeds Naval Deployment
UK Chancellor Rejects Claims She Misled Public on Fiscal Outlook Ahead of Budget
Starmer Defends Autumn Budget as Finance Chief Faces Accusations of Misleading Public Finances
EU Firms Struggle with 3,000-Hour Paperwork Load — While Automakers Fear De Facto 2030 Petrol Car Ban
White House launches ‘Hall of Shame’ site to publicly condemn media outlets for alleged bias
UK Budget’s New EV Mileage Tax Undercuts Case for Plug-In Hybrids
UK Government Launches National Inquiry into ‘Grooming Gangs’ After US Warning and Rising Public Outcry
Taylor Swift Extends U.K. Chart Reign as ‘The Fate of Ophelia’ Hits Six Weeks at No. 1
250 Still Missing in the Massive Fire, 94 Killed. One Day After the Disaster: Survivor Rescued on the 16th Floor
Trump: National Guard Soldier Who Was Shot in Washington Has Died; Second Soldier Fighting for His Life
UK Chancellor Reeves Defends Tax Rises as Essential to Reduce Child Poverty and Stabilise Public Finances
No Evidence Found for Claim That UK Schools Are Shifting to Teaching American English
European Powers Urge Israel to Halt West Bank Settler Violence Amid Surge in Attacks
"I Would Have Given Her a Kidney": She Lent Bezos’s Ex-Wife $1,000 — and Received Millions in Return
European States Approve First-ever Military-Grade Surveillance Network via ESA
UK to Slash Key Pension Tax Perk, Targeting High Earners Under New Budget
UK Government Announces £150 Annual Cut to Household Energy Bills Through Levy Reforms
UK Court Hears Challenge to Ban on Palestine Action as Critics Decry Heavy-Handed Measures
Investors Rush Into UK Gilts and Sterling After Budget Eases Fiscal Concerns
UK to Raise Online Betting Taxes by £1.1 Billion Under New Budget — Firms Warn of Fallout
Lamine Yamal? The ‘Heir to Messi’ Lost to Barcelona — and the Kingdom Is in a Frenzy
Warner Music Group Drops Suit Against Suno, Launches Licensed AI-Music Deal
HP to Cut up to 6,000 Jobs Globally as It Ramps Up AI Integration
MediaWorld Sold iPad Air for €15 — Then Asked Customers to Return Them or Pay More
×