Hungary Requests U.S. Exemption for Gazprombank

BUDAPEST (Reuters) – Hungary has asked the United States to exempt Russia's Gazprombank from sanctions concerning natural gas payments, as the sanctions could negatively impact some U.S. allies, according to Hungary's foreign minister on Wednesday.

The U.S. imposed new sanctions on Gazprombank on Nov. 21, as President Joe Biden intensifies measures against Moscow for its invasion of Ukraine prior to leaving office in January.

These sanctions prevent the state-controlled lender from processing any new energy transactions involving the U.S. financial system.

"Yesterday we filed our request with the relevant American authorities for Gazprombank to be exempt from sanctions regarding natural gas payments," said Foreign Minister Peter Szijjarto during a briefing broadcasted on his Facebook page.

Szijjarto, who spoke in Brussels after a NATO foreign ministers' meeting, referenced U.S. Secretary of State Antony Blinken's willingness to consult with allies affected by the sanctions.

Hungary relies on Russia for approximately two-thirds of its gas imports, and there is increasing pressure for the country and its neighbors to diversify their energy sources more rapidly, following Moscow's 2022 invasion of Ukraine.

Hungary has been receiving 4.5 billion cubic meters (bcm) of gas annually from Russia under a 15-year deal established in 2021.

Szijjarto stated that any exemption would resemble those granted to other Russian banks processing payments for Russian uranium purchased by the United States.

He mentioned he would travel to Washington later on Wednesday but did not specify the topics of his discussions there.

On Monday, Szijjarto visited Moscow for talks with Russian Energy Minister Alexander Novak, noting that Hungary is seeking a solution to continue payments for Russian gas after Gazprombank's sanctioning by the U.S.