Hungary declares that the issue of Russian gas payments has been resolved

Hungary's foreign minister announced on Friday that it had found a way to pay for Russian gas via the Turkstream pipe from Bulgaria, while avoiding the U.S. sanction. He did not provide any details about the agreement.

The U.S. has imposed sanctions against Russia

Gazprombank

On Nov. 21, creating a barrier for European gas buyers. Gazprombank has been used by buyers to pay for their purchases, including a currency conversion scheme to roubles.

Turkstream, which runs through Bulgaria from Turkey, is the main pipeline used by Hungary to receive its Russian gas, 7 billion cubic meters so far in this year.

Peter Szijjarto, the Hungarian Minister of Foreign Affairs, said that after talks in Sofia the issue was resolved and Bulgaria could now receive its transit fees. The gas had been delivered via Gazprombank. He did not specify how future payments will be made.

Szijjarto stated in a Facebook video that "this problem has been dealt with, and a legal solution to the financial issue has been found which has been accepted by both our Bulgarian and American partners, and is acceptable to us as well, and doesn't fall under sanctions."

"Our colleagues will finish the necessary legal work and financial work and so the transport of natural gas via Bulgaria will remain absolutely secure, despite the restrictive American measures."

Szijjarto held discussions with Russian Deputy Premier Alexander Novak, stating that the goal was to find a legal solution for future payments of gas shipments. Szijjarto declined to comment on the talks. (Reporting and editing by Anita Komuves, Krisztina than and Gareth Jones).

(source: Reuters)