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US Grants Hungary Sanctions Exemption for Russian Gas Payments Through Gazprombank
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![Ivan_khomenko]( "Ivan Khomenko")
-21d0b63c17f6020e4df75f6c6f9a2f4f.jpg "Ivan Khomenko")
The United States has granted Hungary an exception to sanctions against Gazprombank, allowing Budapest to continue payments for Russian gas, according to Hungarian Foreign Minister Péter Szijjártó on December 19.
“Today the US have granted a gas payment exemption for Gazprombank, which is good news, but in the meantime we have worked out a solution with our regional allies, an alternative payment method that does not violate sanctions but allows payments to be made,” Szijjártó said.
While the US exception applies to payments for gas, Szijjártó noted that the US maintains restrictions on financial transactions related to Russia’s construction of the Paks 2 nuclear power plant in Hungary. He described this decision as a “purely political measure.”
Gazprombank, a key Russian financial institution, was sanctioned by the US due to its involvement in financing activities linked to Russia’s aggression against Ukraine in Ukraine. Despite these sanctions, Gazprombank remains the only authorized institution for processing payments related to Russian energy exports.
Last month, the US Treasury Department sanctioned over 50 Russian financial entities, including Gazprombank, as part of ongoing efforts to restrict Russia’s access to the international financial system. Despite these measures, Hungary has worked to ensure the uninterrupted supply of Russian energy through alternative financial arrangements that align with the legal frameworks set by the US sanctions.
