Hungary: US exemption of gas payments from Russia Gazprombank sanctioned

In a video on social media, Hungarian Minister of Foreign Affairs Peter Szijjarto stated that the United States had granted exemptions for gas payments from the sanctions they imposed against Russia's Gazprombank.

The U.S. implemented sanctions against Gazprombank in November, creating a barrier for European gas buyers. Gazprombank was used by buyers to pay for their purchases.

Hungary, which relies primarily on Russian oil, gas and other energy sources, requested an exemption from the U.S.

These countries, including Turkey and Slovakia, are seeking clarifications and alternatives to pay for the U.S. Gazprombank sanctions.

In the video, Szijjarto tells a New York reporter that "today they gave an exemption for payments related to Gazprombank. This is good news. But in the interim, we have worked out with our regional partners, an alternative method of payment which does not break sanctions, but still allows payments (for the gas)."

It was not possible to reach the U.S. Treasury Department for immediate comment.

SPP, the main gas purchaser in Slovakia, said that it did not receive notification of an exemption from gas payments.

Szijjarto claimed that the U.S. continues to prohibit financial transactions via Gazprombank in relation to the Paks 2, a nuclear power plant being built by Rosatom in Hungary. He called it a "completely political decision".

He did not provide any further information on gas payments, but said that Hungary's energy supplies were secure.

Szijjarto said that the issue of gas payments had been resolved because the countries affected had come up with an alternative method of payment. He didn't say how it would work and the Hungarian Foreign Ministry did not respond to emails. (Reporting and editing by Rod Nickel; Additional reporting by Jason Hovet, Prague)

(source: Reuters)