Hungary expelled 10 Russian diplomats on Tuesday, saying they had acted in ways incompatible with their status, in a clear signal that the pro-Russian era of former Prime Minister Viktor Orban is over.
Russia said it would retaliate against what it called an "extremely unfriendly step."
"(Those expelled) were engaged in activities in Hungary that are unacceptable for diplomats under the Vienna Convention," Hungarian Foreign Minister Anita Orban, who is not related to the former prime minister, said in an emailed statement.
"This decision... does not imply breaking off diplomatic relations with Russia. Hungary intends to continue the necessary dialog," the statement added.
However, Russia's ambassador to Budapest, Evgeny Stanislavov, rejected this suggestion.
"Their statements about keeping channels of dialogue with Russia open and continuing pragmatic cooperation are worth absolutely nothing," he said in a statement.
"This extremely unfriendly step is an unprecedented and unjustified escalation on the Hungarian side, and it will receive an appropriate response," Stanislavov added.
Viktor Orban kept close ties with Putin
Viktor Orban, who lost power in Hungary in April after 16 years in office, had kept close ties with Russian President Vladimir Putin even after Russia invaded Ukraine in 2022.
Under him, Hungary continued buying Russian oil and gas, defied European Union sanctions on Russia, and blocked a €90 billion ($97 billion) EU loan to Ukraine.
After Russia invaded Ukraine, many European countries expelled dozens of Russian diplomats, while Hungary expelled none. Until Tuesday, it had not sent any home publicly since 2018.
New Prime Minister Peter Magyar and his center-right government have repeatedly said that Hungary's main alliances are the European Union and NATO and that the government aims to rebuild trust eroded under Orban's rule.
In a parliamentary hearing in May, Anita Orban said Russia would "remain a partner" but the relationship could not be based on "one-sided dependency," adding that Moscow's policies pose a security challenge to Hungary and Europe.