Hungary has reportedly worked out most of the payment issues caused by US sanctions on Gazprombank

Budapest and Moscow have already worked out solutions to most of the problems created by US sanctions against Gazprombank, Hungarian Foreign Minister Peter Szijjarto has said.

Washington’s announcement of sanctions at the end of November resulted in the blockade of payments for Russian natural gas and transit fees, causing disruptions in supplies for Hungary and Slovakia.

“We have found solutions to three of the four issues,” Szijjarto told the Hungarian Parliament on Tuesday. “In one case, we already have a legal basis for two different structures, and will pick out the best one.”

Testifying before a parliamentary committee, Szijjarto explained that the US decision “seriously affected” payments that Hungary had been processing through Gazprombank, including for natural gas bought on contract from Gazprom, transit fees through two neighboring countries, as well as Russian fuel for the Paks Nuclear Power Plant.

The Hungarian foreign minister was in Moscow on Monday, where he discussed the situation with Deputy Prime Minister Aleksandr Novak and representatives of Russian energy companies. Szijjarto told the lawmakers that the Russian partners assured him Moscow is interested in continuing the gas deliveries and maintaining the existing agreements. Lawyers specializing in sanctions, energy, and finance were working on the best ways to overcome the current situation, he said.

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Washington’s sanctions are an attempt to pressure the countries of central and southeastern Europe to abandon Russian energy in favor of more expensive American exports, Szijjarto argued.

“We have no intention of giving up this good cooperation,” Szijjarto told Hungarian media on Monday, referring to the contracts with Russia. “Not only because no one has ever made us a better offer. We are not aware of any energy sources that are more secure and more competitively priced.”

Hungary has a long-term contract with Gazprom and receives the bulk of its gas from Russia. As of the end of October, Budapest has imported over 6.2 billion cubic meters of Russian natural gas, compared to 5.6 billion in 2023 and 4.8 billion in 2022. The gas comes mainly through the Turkish Stream pipeline and its branches that run through Bulgaria and Serbia.

The next batch of energy payments to Russia is due by December 20. Budapest has said that a solution will be found by that date.