Hungary has formally requested the United States to exempt Russia’s Gazprombank from sanctions to continue processing natural gas payments. This announcement on December 4, 2024, comes as tensions escalate following the latest U.S. sanctions targeting Gazprombank, imposed on November 21 in response to Russia’s ongoing invasion of Ukraine.
Foreign Minister Péter Szijjártó, speaking after a NATO foreign ministers’ meeting in Brussels, highlighted Hungary’s heavy reliance on Russian energy. He explained that the sanctions risk disrupting vital gas supplies and emphasized that the appeal aligns with prior U.S. practices of granting exemptions to Russian banks handling uranium transactions for American buyers.
Hungary imports about two-thirds of its gas from Russia through a 15-year deal signed in 2021, with Gazprombank serving as a key financial intermediary. The sanctions now block new energy-related transactions involving the U.S. financial system, putting Hungary’s energy security at significant risk. Szijjártó indicated that U.S. Secretary of State Antony Blinken had shown openness to discussing the issue, signaling potential flexibility for allies affected by the restrictions.
The situation underscores the persistent challenges for nations dependent on Russian energy supplies. Despite international calls to diversify, Hungary remains tied to Moscow, reflecting a limited ability to pivot away from Russian gas in the short term. This dependence has frequently placed Hungary at odds with NATO and EU allies, many of whom advocate for stronger collective actions against Russia.
Hungary’s predicament also highlights broader economic and geopolitical implications. If the exemption request is denied, the country faces the prospect of disrupted gas supplies or costly alternative arrangements. Such disruptions could exacerbate tensions within the EU, as Hungary’s reliance on Russian energy continues to complicate joint efforts to weaken Moscow’s economic base.
Szijjártó plans to travel to Washington to press Hungary’s case, adding urgency to what has become a critical test of Hungary’s energy strategy and its relationship with Western allies.
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