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Main Business — Ukraine has suspended the "war sponsor" status for the Hungarian OTP Bank. In return, Kyiv expects Budapest to unlock EU military tranches

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Ukraine has suspended the "war sponsor" status for the Hungarian OTP Bank. In return, Kyiv expects Budapest to unlock EU military tranches

30 Sep, 2023
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Ukraine has suspended the "war sponsor" status for the Hungarian OTP Bank. In return, Kyiv expects Budapest to unlock EU military tranches

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Ukraine's National Agency for Prevention of Corruption has suspended the status of international "war sponsor" for the Hungarian OTP Bank, which has been repeatedly demanded by the Hungarian government.

The NAPC explained that the status of "war sponsor" for the financial institution has been suspended during negotiations with the Hungarian authorities. The agency hopes that "such a decision will lead to the unlocking by Hungary of 500 million euros in critically needed EU military aid to Ukraine."

The National Agency for Prevention of Corruption has also suspended the "war sponsor" status for five Greek shipping companies (Dynacom Tankers Management, Delta Tankers, Thenamaris Ships Management, Minerva Marine, TMC Tankers). These companies were accused by Ukrainian authorities of illegally transporting Russian oil to bypass price caps.

According to the National Agency for Prevention of Corruption, the suspension of the status of the Greek companies will prevent Greece from blocking future EU sanctions packages.

"This decision was made as a result of negotiations between representatives of the Agency and representatives of the companies and governments of these countries to end cooperation with the Russian Federation," the National Agency for Prevention of Corruption's statement said.

Ukraine added the Hungarian OTP Bank to its list of "war sponsors" in May of this year. The National Agency for Prevention of Corruption (NAPC) cited the bank's leadership's decision to continue its operations in Russia and its practical recognition of the so-called "LNR" and "DNR" as the reasons for this designation.

In response, OTP Bank stated that the information regarding recognition of the LPR and DPR was not accurate, and OTP Group significantly reduced its presence in the Russian market, particularly by decreasing its corporate loan portfolio there by 75%. OTP Group had previously announced its intention to explore opportunities to exit the Russian market.

Additionally, Hungary's Foreign Minister, Péter Szijjártó, stated that Budapest would block European Union military aid packages to Ukraine until Kyiv removes OTP Bank from the list of international "war sponsors."

Currently, the NAPC's registry of international "war sponsors" includes approximately 300 foreign companies from 15 countries, including China, the United States, Greece, France, Germany, and others.

The Odessa Journal

The Odessa Journal

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