By Charles Kennedy – Dec 04, 2024, 9:00 AM CST
Hungary, which continues to receive Russian natural gas via pipeline, has asked U.S. authorities to exempt Russia’s Gazprombank from the sanctions when payments for natural gas are processed, Hungarian Foreign Minister Peter Szijjarto said on Wednesday.
“Yesterday we filed our request with the relevant American authorities that calls for Gazprombank being granted an exception from sanctions when it comes to payments for natural gas,” Szijjarto said at a briefing, as quoted by Reuters.
Last month, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Gazprombank in what the Treasury said was “another major step in implementing commitments made by G7 leaders to curtail Russia’s use of the international financial system to further its war against Ukraine.”
The latest sanction measures include the designation of Gazprombank, more than 50 internationally connected Russian banks, more than 40 Russian securities registrars, and 15 Russian finance officials.
Before November 21, the U.S. Treasury had refrained from imposing sanctions on Gazprombank, which has been used by Russia’s European customers to pay for the natural gas they still receive from Russia.
Hungary, which still receives about two-thirds of its natural gas from Russia, has been using Gazprombank for payments for the supply.
Unlike other EU member states, Hungary hasn’t severed ties with Russia and top Hungarian officials, including Szijjarto and Prime Minister Viktor Orban, have frequently traveled to Moscow for visits and meetings with Russian officials, including with Vladimir Putin.
Earlier this week, Szijjarto traveled to Moscow for meetings with Russian Foreign Minister Sergey Lavrov, Russian Deputy Prime Minister Alexander Novak, and major Russian energy companies to discuss oil and gas imports.
The sanctions on Gazprombank have put countries “that use Russian energy resources in a difficult situation,” Szijjarto said in Russia, as carried by Euronews.
Following the sanctions on Gazprombank, Turkey is also seeking a U.S. sanctions waiver to continue using the bank for paying for its energy imports from Russia, while also talking with Russian officials about the future of energy trade and payments.
By Charles Kennedy for Oilprice.com
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