U.S. Eases Gas Payment Sanctions for Hungary Amidst Russia Tensions

The United States has granted an exemption for gas payments via Gazprombank from sanctions imposed on Russia, as announced by Hungarian Foreign Minister Peter Szijjarto. This move provides relief for Hungary, Turkey, and Slovakia, who rely heavily on Russian energy. However, sanctions remain on financial transactions for Hungary's Paks 2 nuclear project.

The United States has provided an exemption for gas payments to Gazprombank, easing sanctions previously imposed on the Russian bank, according to Hungary's Foreign Minister Peter Szijjarto. This development, announced in a social media video, comes as relief for countries like Hungary, Turkey, and Slovakia, heavily reliant on Russian energy supplies.

On November 21, the U.S. sanctions on Gazprombank disrupted European buyers' payment processes. Hungary sought an exemption given its dependency on Russian oil and gas. Szijjarto explained that regional allies collaborated on an alternative payment method that complies with sanctions, ensuring continued gas transactions without utilizing Gazprombank.

While the U.S. Treasury Department has not commented, Slovakia's state-owned gas buyer reported no official exemption notification. Despite the exemption, Szijjarto noted continued U.S. restrictions on financial transactions through Gazprombank related to Hungary's Paks 2 nuclear plant project, labeling it political. Hungary ensures its energy security but remains vague about alternative payment details.

(With inputs from agencies.)