Finance
US exempting gas payments from Russia Gazprombank sanctions, Hungary says
Published by Global Banking and Finance Review
Posted on December 19, 2024
Global Banking and Finance Review
Company
Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
Published by Global Banking and Finance Review
Posted on December 19, 2024
BUDAPEST (Reuters) - The United States granted an exemption for gas payments on Thursday from sanctions it had imposed on Russia's Gazprombank, Hungarian Foreign Minister Peter Szijjarto said in a video posted to social media.
The U.S. imposed sanctions on Gazprombank on Nov. 21, creating an obstacle for European buyers of Russian gas. Buyers had been using Gazprombank to make payments.
Hungary, which mainly relies on Russian oil and gas, asked the U.S. for an exemption.
The U.S. sanctions on Gazprombank have caused difficulties for several importers, who also include Turkey and Slovakia, and these countries have been looking for clarification and options to make payments.
"Today they have given an exemption for gas payments relating to Gazprombank, which is good news, 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)," Szijjarto told a reporter in New York, in the video.
The U.S. Treasury Department could not be immediately reached for comment.
Slovakia's main gas buyer, state-owned SPP, said it had not received notification of a gas-payment exemption.
Szijjarto said the U.S. continued to ban financial transactions via Gazprombank relating to the Paks 2 nuclear plant that Russia's Rosatom is building in Hungary, calling it an "entirely political decision".
He said Hungary's energy supply was secure, but did not give further details on the gas payments.
Szijjarto had said on Friday the gas-payment issue had been resolved as the affected countries had worked out an alternative mode of payment. He did not say how that would work, and the Hungarian Foreign Ministry has not replied to emailed Reuters questions.
(Reporting by Krisztina Than; additional reporting by Jason Hovet in Prague; Editing by Rod Nickel)