Turkey seeks U.S. exemption from Gazprombank sanctions amid energy dependency concerns
Amid the fallout from U.S. sanctions on Russia's Gazprombank affecting Turkey, Ankara is urging Washington to lift the restrictions specifically for the Turkish side. According to the Turkish newspaper Hürriyet, this topic was raised on December 13 during discussions in Ankara with an American delegation led by U.S. Secretary of State Antony Blinken.
The publication reminds us that the U.S. administration imposed sanctions on Gazprombank to hinder Russia's use of the international financial system. In addition to Gazprombank, the sanctions list includes over 50 Russian banks with international ties, more than 40 Russian security registrars, and 15 Russian officials associated with the financial sector. Energy and Natural Resources Minister Alparslan Bayraktar expressed that this decision will impact Turkey, which seeks an exemption.
Turkey has reportedly submitted the necessary applications to Washington. The Americans have acknowledged these applications, stating they are aware of and currently examining the issue.
At the end of November, Turkish Foreign Minister Hakan Fidan criticized the U.S. decision to sanction Gazprombank and its six overseas subsidiaries. Highlighting that Turkey imports 40% of its gas through Gazprom, Fidan expressed his frustration over the U.S.'s lack of concern.
It seems the European Union is also unhappy with the U.S. sanctions on Gazprombank. On December 6, Bloomberg reported, citing sources, that the EU is pressuring its overseas partners to soften these restrictions. Gazprombank is crucial for payments for Russian gas supplies to EU nations, and some European governments and companies have warned that sanctions could risk disrupting gas supplies to the region.
Negotiations have centered around whether it is legal to process payments for Russian gas through Gazprombank's subsidiary in Luxembourg or if other channels should be used, as reported by the agency.
According to Bloomberg, these discussions began after Russian President Vladimir Putin rescinded the requirement that payments for Russian gas had to be made solely through Gazprombank. Although Putin’s new decree calmed the European gas market, it has left EU financial institutions uncertain about the legal risks involved, journalists noted.
Gazprombank was impacted by the U.S. package of sanctions from November 21. This financial institution is already on the sanctions list in the UK, Canada, Australia, and New Zealand. As of November 23, payment cards from Gazprombank's UnionPay system are no longer accepted by state and private banks in Turkey.