Hungary and Bulgaria agree on Russian gas transit despite the US sanctions

Hungary and Bulgaria agreed on the transit of Russian gas after the imposition of the US sanctions on “Gazprombank”. The financial institution received payments for the delivered energy resource.

This is reported by Bloomberg.

The parties managed to find a solution despite US restrictions, Foreign Minister Péter Szijjártó said on December 13. According to him, Hungary pays for Russian gas through “Gazprombank”, while Bulgaria receives money for transit.

Bulgaria has previously warned that it will stop supplying gas to central Europe through its territory if “Gazprom” does not resolve the payment issue. Hungaryʼs energy security largely depends on Sofia: the TurkStream gas pipeline passes through the country. According to Bloomberg, the sanctions have also affected Budapestʼs ability to pay for energy.

Hungarian Prime Minister Viktor Orban discussed energy cooperation with Vladimir Putin on December 11. The possibility of uninterrupted gas supplies to Hungary despite restrictions imposed by the Joe Biden administration was also discussed, the publication writes.

• In early 2024, it became known that Ukraine would not directly renew the contract with “Gazprom” for the transit of Russian gas through its gas transportation system. The contract expires on January 1, 2025.
• In November, the US Treasury Department imposed sanctions on dozens of Russian banks, including “Gazprombank”, which accepted payment for Russian gas supplies. Australia, Canada, New Zealand and the United Kingdom had previously imposed sanctions on the financial institution.
• EU countries are starting to look for alternative energy sources, one of which is Azerbaijan. Russia said it was ready to continue supplying gas through Ukraine, but because of the war, Ukraine refused to participate in negotiations with Russia on gas exports through its territories.

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