Saudi Press

Saudi Arabia and the world
Tuesday, Nov 11, 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.

Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Trump Unveils Middle East Reset: Syria Re-engaged, Saudi Ties Amplified
Saudi Arabia to Build Future Cities Designed with Tourists in Mind, Says Tourism Minister
Saudi Arabia Advances Regulated Stablecoin Plans with Global Crypto Exchange Support
Saudi Arabia Maintains Palestinian State Condition Ahead of Possible Israel Ties
Chinese Steel Exports Surge 41% to Saudi Arabia as Mills Pivot Amid Global Trade Curbs
Saudi Arabia’s Biban Forum 2025 Secures Over US$10 Billion in Deals Amid Global SME Drive
Saudi Arabia Sets Pre-Conditions for Israel Normalisation Ahead of Trump Visit
MrBeast’s ‘Beast Land’ Arrives in Riyadh as Part of Riyadh Season 2025
Cristiano Ronaldo Asserts Saudi Pro League Outperforms Ligue 1 Amid Scoring Feats
AI Researchers Claim Human-Level General Intelligence Is Already Here
Saudi Arabia Pauses Major Stretch of ‘The Line’ Megacity Amid Budget Re-Prioritisation
Saudi Arabia Launches Instant e-Visa Platform for Over 60 Countries
Dick Cheney, Former U.S. Vice President, Dies at 84
Saudi Crown Prince to Visit Trump at White House on November Eighteenth
Trump Predicts Saudi Arabia Will Normalise with Israel Ahead of 18 November Riyadh Visit
Entrepreneurial Momentum in Saudi Arabia Shines at Riyadh Forward 2025 Summit
Saudi Arabia to Host First-Ever International WrestleMania in 2027
Saudi Arabia to Host New ATP Masters Tournament from 2028
Trump Doubts Saudi Demand for Palestinian State Before Israel Normalisation
Viral ‘Sky Stadium’ for Saudi Arabia’s 2034 World Cup Debunked as AI-Generated
Deal Between Saudi Arabia and Israel ‘Virtually Impossible’ This Year, Kingdom Insider Says
Saudi Crown Prince to Visit Washington While Israel Recognition Remains Off-Table
Saudi Arabia Poised to Channel Billions into Syria’s Reconstruction as U.S. Sanctions Linger
Smotrich’s ‘Camels’ Remark Tests Saudi–Israel Normalisation Efforts
Saudi Arabia and Qatar Gain Structural Edge in Asian World Cup Qualification
Israeli Energy Minister Delays $35 Billion Gas Export Agreement with Egypt
Fincantieri and Saudi Arabia Agree to Build Advanced Maritime Ecosystem in Kingdom
Saudi Arabia’s HUMAIN Accelerates AI Ambitions Through Major Partnerships and Infrastructure Push
IOC and Saudi Arabia End Ambitious 12-Year Esports Games Partnership
CSL Seqirus Signs Saudi Arabia Pact to Provide Cell-Based Flu Vaccines and Build Local Production
Qualcomm and Saudi Arabia’s HUMAIN Team Up to Deploy 200 MW AI Infrastructure
Saudi Arabia’s Economy Expands Five Percent in Third Quarter Amid Oil Output Surge
China’s Vice President Han Zheng Meets Saudi Crown Prince as Trade Concerns Loom
Saudi Arabia Unveils Vision for First-Ever "Sky Stadium" Suspended Over Desert Floor
Francis Ford Coppola Auctions Luxury Watches After Self-Financed Film Flop
US and Qatar Warn EU of Trade and Energy Risks from Tough Climate Regulation
‘No Kings’ Protests Inflate Numbers — But History Shows Nations Collapse Without Strong Executive Power
Ofcom Rules BBC’s Gaza Documentary ‘Materially Misleading’ Over Narrator’s Hamas Ties
"The Tsunami Is Coming, and It’s Massive": The World’s Richest Man Unveils a New AI Vision
Yachts, Private Jets, and a Picasso Painting: Exposed as 'One of the Largest Frauds in History'
AI and Cybersecurity at Forefront as GITEX Global 2025 Kicks Off in Dubai
EU Deploys New Biometric Entry/Exit System: What Non-EU Travelers Must Know
Ex-Microsoft Engineer Confirms Famous Windows XP Key Was Leaked Corporate License, Not a Hack
China’s lesson for the US: it takes more than chips to win the AI race
Israel and Hamas Agree to First Phase of Trump-Brokered Gaza Truce, Hostages to Be Freed
The Davos Set in Decline: Why the World Economic Forum’s Power Must Be Challenged
Wave of Complaints Against Apple Over iPhone 17 Pro’s Scratch Sensitivity
Syria Holds First Elections Since Fall of Assad
Altman Says GPT-5 Already Outpaces Him, Warns AI Could Automate 40% of Work
Trump Organization Teams with Saudi Developer on $1 Billion Trump Plaza in Jeddah
×