Turkey in Talks With US Over Easing Sanctions on Russian Gas Payments

Turkey is negotiating with the United States to ease sanctions on Russia, which would allow Turkey to continue using Gazprombank for payments related to natural gas imports, Bloomberg reports on November 26.

A Russian delegation held discussions in Ankara on Tuesday with officials from several Turkish ministries to explore alternative payment methods, according to sources familiar with the matter, who spoke on condition of anonymity.

Turkey's Minister of Energy, Alparslan Bayraktar, stated that without US approval, “we won’t be able to pay Russia.”

“If there is no exemption, it may amount to something very big for Turkey,” he said.

Gazprombank, one of Russia's largest financial institutions, is primarily owned by the state-run energy giant Gazprom. It acts as a key channel for Russia's procurement of military equipment for its war in Ukraine, processes payments to Russian military personnel, and handles transactions for Russian gas exports.

Russia is Turkey's largest gas supplier, providing about 42% of Turkey's gas imports in 2023.

Ankara and Moscow aim to create a natural gas hub in Turkey, potentially including the construction of additional undersea pipelines across the Black Sea. In addition to gas, Turkey depends on Russia for roughly half of its crude oil imports, is building a nuclear power plant with Rosatom, and is in discussions to develop a second one, Bloomberg reports. 

Earlier on November 21, the US Department of the Treasury has imposed sanctions on dozens of Russian banks, including Gazprombank, securities registrars, and financial sector officials, in an effort to restrict Russia’s access to the international financial system.