Hungary asks US for exemption from Gazprombank sanctions on gas payments

Hungary has asked the United States to grant Russian company Gazprombank an exemption from sanctions for payments for natural gas supplies. Hungarian Foreign Minister Péter Szijjártó said this today, according to Reuters. He warned that the sanctions could have a negative impact on some US allies.

Washington imposed sanctions on Gazprombank last month as part of measures against Russia over its invasion of Ukraine. Among other things, Gazprombank collects payments for gas from European customers of Russian state-owned gas company Gazprom.

The sanctions prevent the Russian bank from carrying out any new energy-related transactions involving the US financial system.

Szijjártó said Hungary submitted a request for an exemption to the relevant US authorities on Tuesday. US Secretary of State Antony Blinken had expressed a willingness to consult with allies facing difficulties because of the sanctions, he said.

Russia accounts for roughly two-thirds of Hungary’s gas imports. In 2021, Hungary signed a 15-year contract under which it receives 4.5 billion cubic metres of gas a year from Gazprom, Reuters reports.

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