Kiev has accused Budapest of operating an intelligence network in Transcarpathia

An escalating spy row between Hungary and Ukraine has derailed a planned intergovernmental meeting to discuss strained bilateral relations.

The Security Service of Ukraine (SBU)claimedon Friday that it uncovered a Hungarian military intelligence network operating in the border Transcarpathia region - home to a significant Hungarian minority. Two Ukrainian nationals accused of spying on behalf of Budapest have been detained.

On Sunday, Levente Magyar, the Hungarian parliamentary state secretary for foreign affairs, announced the cancelation of a scheduled meeting which he and Ukrainian Deputy Prime Minister Olga Stefanishina agreed to last month. He explained that "good-faith constructive negotiations" have become impossible following Kiev's public allegations. Stefanishina urged continued dialogue despite the fallout.

The talks were due to take place in Uzhgorod, a Ukrainian city near the Hungarian border, and were set to focus on the rights of ethnic Hungarians living in the country.

In response to the espionage claims, Budapest has deported an alleged former Ukrainian spy who government spokesman Zoltan Kovacs described as "a serious threat to Hungary's sovereignty." He posted a video showing the arrest of the person, mirroring the SBU's reporting of its crackdown.

Each side has also expelled two diplomats accused of being intelligence operatives. Hungarian Foreign Minister Peter Szijjarto claimed that Kiev initiated the scandal for propaganda purposes.

Hungary, a NATO and EU member, has often been at odds with Kiev and its Western backers regarding the conflict between Russia and Ukraine. Budapest has refused to supply weapons to Kiev and has instead called for a ceasefire with Moscow, which has frustrated Ukrainian officials.

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Budapest also opposes Ukraine's bids to join the EU and NATO. Among other things, it has cited Kiev's treatment of ethnic minorities, including laws that restrict education and cultural rights in minority languages.

(RT.com)