The recent regulatory change will permit importers to use alternative banks or settle payments “in another way agreed upon by the Russian supplier with the foreign buyer.”
Despite Russia halting pipeline gas supplies to countries such as Germany, the Czech Republic, and Poland in an attempt to wield energy as a geopolitical weapon following its invasion of Ukraine, Hungary and Slovakia have continued receiving gas through a long-term contract with Russian state-owned energy giant Gazprom.
On Wednesday, Hungary — still heavily dependent on Russia for approximately two-thirds of its natural gas needs — disclosed that it had sought a sanctions exemption from the United States to enable continued transactions with Gazprombank.
“Gazprombank has served as the primary financial conduit for oil and gas payments to Europe,” explained Maria Shagina, a sanctions specialist at the International Institute for Strategic Studies. “Blacklisting the bank has already triggered a sharp fall in the value of the Russian ruble and is likely to impact gas payments involving Hungary and Slovakia.”
Last week, Russia’s central bank halted currency trading due to a dramatic depreciation of the ruble, which followed the announcement of new sanctions targeting Moscow’s economy.
Nonetheless, Shagina pointed out that while exploring alternative banking channels might provide a temporary “workaround,” these new institutions could also face punitive measures as part of broader efforts to stem the financial flows sustaining the war effort.
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