Turkey has obtained a waiver from the United States to pay for natural gas to Russia via the now-sanctioned Russian Gazprombank, Turkish Energy Minister Alparslan Bayraktar told Reuters on Friday.
In November, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Gazprombank in what the Treasury said was “another major step in implementing commitments made by G7 leaders to curtail Russia’s use of the international financial system to further its war against Ukraine.”
The latest sanction measures include the designation of Gazprombank, more than 50 internationally connected Russian banks, more than 40 Russian securities registrars, and 15 Russian finance officials.
Before November 21, the U.S. Treasury had refrained from imposing sanctions on Gazprombank, which has been used by Russia’s European customers to pay for the natural gas they still receive from Russia.
Turkey and other remaining customers of Russian gas in Europe are using Gazprombank.
Turkey is importing more than half of its natural gas purchases from Russia. Overall, Turkey currently imports nearly all the natural gas it consumes, and most of it comes from Russia.
Last month, Turkey sought a U.S. sanctions waiver to continue using Gazprombank for paying for its energy imports from Russia, while also talking with Russian officials about the future of energy trade and payments.
Earlier this week, Hungary, another customer of Russian gas, also announced that it had received a waiver for pay for Russian gas after the U.S. sanctioned Gazprombank.
“Today they have given an exemption for gas payments relating to Gazprombank, which is good news,” Hungarian Foreign Minister Peter Szijjarto said in a video posted on Thursday.
Szijjarto continued, “But in the meantime we have worked out a solution with our regional allies, an alternative mode of payment, which does not violate sanctions but allows payments (for gas).”
By Charles Kennedy for Oilprice.com
