Ukraine’s EU Accession Could Unleash the Baloga Clan on Hungary

The international cigarette smuggling ring case to be tried in the Debrecen has ties reaching to Transcarpathia. The Hungarophobe Baloga clan, who have been banned from entering the EU, are also implicated.

Brussels is pushing for Ukraine’s fast-tracked EU membership, which will bring unpredictable security challenges. (Photo: AFP)

On Monday, the long-awaited criminal trial will begin at the Debrecen Court of Law. Key figures of an international cigarette smuggling network will stand trial, charged with causing billions of forints in damage to the Hungarian state budget.

According to the indictment, a multinational crime syndicate—comprised of Hungarian, Polish, Ukrainian, and Romanian-Russian nationals—regularly smuggled large quantities of cigarettes illegally from the United Arab Emirates into Hungary through Debrecen International Airport. Hungarian authorities intercepted the third shipment, revealing that the perpetrators had already inflicted more than 8.5 billion forints (about 21.3 million euros) in financial damage to the state budget.

During the preliminary hearing in January of this year, the prosecution offered the Hungarian defendant, Jozsef Sarkadi, a nine-year prison sentence and his Polish accomplice, Ireneusz Dilczyk, ten years—on condition that they plead guilty. Both men refused and denied the charges.

On Monday, Sarkadi and Dilczyk will once again face the court. However, the Polish defendant will participate via video call since Poland refused to extradite him.

The prosecution has accused the two men and their accomplices (whereabouts unkown) with large-scale financial fraud committed within a criminal organization.

 

The Smugglers Were Caught Red-handed at the Airport

As previously reported by Magyar Nemzet, in August 2022, a cargo plane landed at Debrecen Airport, arriving directly from Dubai. After customs clearance, the shipment was loaded onto four Polish trucks which then set off. However, upon leaving the airport, officers from Hungary’s National Tax and Customs Administration (NAV), in a meticulously planned and executed operation cracked down on them.

Airplanes were used for smuggling cigarettes 

Hidden among auto parts, the trucks were carrying 23 million untaxed cigarettes produced in the UAE.

 The financial damage to the state amounted to billions of forints. Several members of the smuggling ring fled, and two individuals remain on Interpol’s wanted list.
 

Record Bail Posted

Jozsef Sarkadi, suspected of organizing the distribution of the smuggled goods, was arrested at the reception of a hotel in Debrecen. Three of his suspected accomplices are still on the run, with international and European arrest warrants issued against them. Of the fugitives, Polish national Dilczyk Ireneusz has since been found, but Russian national Dmitry Pisarev and Ukrainian national Volodymyr Stont remain at large.

According to Debrecen Court spokesperson Denes Dobo,

 Sarkadi was held in pretrial detention for 18 months before being released on an unprecedentedly high bail of 180 million forints (about 450 thousand euros). This amount is a record for Hajdu-Bihar County and is only surpassed at the national level by the bail for Laszlo Vizoviczki, a leading figure in Budapest’s underworld.

Sarkadi clearly had the means to pay. When authorities raided his home, even seasoned investigators were stunned by the luxury. In a NAV-released video, golden bathroom fixtures—including a gold-plated bidet—can be seen. Over 500 million forints’ (over 1.2 million euros) worth of luxury cars, valuable watches, and cash were seized from him. Currently, Sarkadi is under house arrest with an electronic ankle monitor.

Dubai–Debrecen–Mukachevo–Kyiv

Recently, Elon Musk suggested that the war would end instantly if just ten Ukrainian oligarchs were placed on sanctions lists. U.S. sources indicate that a member of the infamous Mukachevo-based Baloga clan is already on a potential list being drafted. Monday’s trial could provide further evidence against them.

The severely anti-Hungarian Viktor Baloga is the most powerful and wealthy man in Transcarpathia.
 

Viktor Baloga is the head of the clan and has been accused in local media of forming a private militia. His people are allegedly embedded within Ukraine’s military and security forces.

During the Zelensky era, Baloga successfully placed his associate M. Tovt in charge of Transcarpathia’s customs service, effectively securing control over smuggling operations in the region. 

He has long prioritized the Ukrainian-Hungarian border, consistently positioning his own people there—including Jozsef Sarkadi, who is now sitting in a Debrecen prison.

Sarkadi, the primary defendant in this case, once served as a high-ranking officer at the border—in a Ukrainian uniform.

Banned from the European Union
 

Viktor Baloga’s son, Andriy Baloga, has continued his father’s operations and now serves as the mayor of Mukachevo. 

Like his father, Andriy Baloga has also been banned from entering the European Union. Similarly, Viktor Baloga’s brother, Pavel Baloga, maintained connections with Jozsef Sarkadi

while the latter was still serving as a Ukrainian border official. Pavel Baloga has also been banned from the EU for national security reasons, along with other clan members.

Viktor Baloga’s superior connection in Ukraine is the notorious Igor Kolomoisky, former governor of Dnipropetrovsk. In Ukraine, there is a common saying: "If something happens in Transcarpathia, Kolomoisky is involved."

Kolomoisky frequently visits Transcarpathia, and Viktor Baloga often travels to him to report in person. Kolomoisky, one of Ukraine’s wealthiest men, operates from the luxurious five-star Radisson Blu Resort in the Carpathian Mountains, near the Bukovel ski resorts.

In 2021, the United States sanctioned Kolomoisky and his businesses over corruption charges. The question now is: which of his proteges will be next?

Cover Photo: Brussels is pushing for Ukraine’s fast-tracked EU membership, which will bring unpredictable security challenges. (Photo: AFP)