The Hungarian government has announced that it will not comply with the European arrest warrant issued by authorities in Croatia for the detention of Zsolt Hernádi, the chairman and CEO of Hungarian oil and gas company MOL, reports Večernji list.

Hernádi is suspected of paying bribes to former Croatian Prime Minister Ivo Sanader in the course of a 2009 deal in which MOL acquired a dominant stake in its Croatian rival INA.

In what appears to be an escalation of diplomatic hostilities, the Hungarian government has described the charges against Hernádi as “unjust”, and cancelled a planned visit by its foreign minister to Dubrovnik, which was to take place October 4. As the majority shareholder in MOL, it has also threatened to sell its position in INA and to undertake “all possible legal measures to counter offences against Hungary”.