Hungary urges US to exempt Russian bank from sanctions on gas payments

Hungarian Foreign Minister  Péter Szijjártó has stated that Hungary raised a concern with the US regarding the exemption of certain Russian banks from sanctions when processing payments for uranium shipments to the US.

“Budapest has proposed an exemption for Gazprombank in relation to gas payments,” he said, Caliber.Az reports via Russian media.

"I told the US Secretary of State that we have made a request to the relevant US agencies to grant an exemption from sanctions for Gazprombank when processing payments for natural gas. It wouldn’t be an unusual situation, considering that several Russian banks already have such an exemption for payments related to uranium deliveries to the US," he told journalists in Brussels following a NATO foreign ministers' meeting.

He added that he requested that the same opportunity be extended to countries in Central and Eastern Europe, allowing them to make payments for Russian gas supplies. Until recently, such payments were made through Gazprombank.

Szijjártó noted that on December 3, he discussed the situation over phone with the energy ministers of Serbia, Slovakia, and Türkiye, and informed them about the request sent to Washington. On December 4, following the NATO foreign ministers' meeting in Brussels, he planned to travel to Washington. 

The Hungarian foreign minister did not specify who he intended to meet with during his visit, only noting that it would be a brief trip, as he expects to attend an OSCE ministerial meeting in Malta on December 5 morning. On December 2, Szijjártó visited Moscow, where he discussed the situation regarding US sanctions on Gazprombank with Russian Deputy Prime Minister Alexander Novak and representatives from major Russian energy companies. 

He said that solutions have been found for three of four issues, and there is now a legal foundation for two competing legal frameworks for the final issue, from which the best option will be chosen. The next payment for Russian gas supplies to Hungary is scheduled for December 20. 

Lawyers specialising in sanctions, energy, and finance are exploring the most effective ways to navigate the current situation. Hungary continues receiving the majority of its natural gas from Russia through long-term contracts with Gazprom. In 2022, 4.8 billion cubic metres (bcm) of gas were delivered to Hungary via the Turkish Stream pipeline and its branches through Bulgaria and Serbia. 

According to Hungarian data, this volume increased to 5.6 bcm in 2023. Szijjártó noted that as of late October 2024, Hungary had already received 6.2 bcm of natural gas from Russia. On November 21, the US Department of the Treasury imposed blocking sanctions on Gazprombank and several other financial institutions.

By Naila Huseynova