Hungary expels 10 Russian diplomats, escalating tensions with Moscow

Russia has criticized Hungary’s decision to expel ten Russian diplomats, with Russian senator Konsztantin Koszacsov stating that the move demonstrates Hungary’s loyalty to the EU and NATO. This diplomatic action, while not severing relations, marks a significant escalation in tensions between Hungary and Russia. The situation arises within the broader context of the Russia-Ukraine conflict, where Hungary is actively involved due to its membership in both the EU and NATO. Russia has indicated that it will retaliate against Hungary’s actions, further straining bilateral relations. Key Takeaways The expulsion of Russian diplomats by Hungary appears to be consistent with increased tensions between Hungary and Russia. Markets suggest this development decreases the likelihood of a peace deal between Ukraine and Russia before 2027. The ongoing diplomatic strain reflects a wider geopolitical alignment with EU and NATO interests. What to Watch Observers will be keen to see how Russia’s promised retaliatory measures against Hungary unfold, which could further impact market sentiment regarding a peace deal. Additionally, any diplomatic engagements involving Russia, Ukraine, and other key NATO...