Turkey in talks with US over sanctions exemption for Russian natural gas payments
Turkey is in talks with the United States in an effort to receive a sanctions waiver to further continue payments for Russian natural gas imports, Turkish Energy Minister Alparslan Bayraktar said on Nov. 25.
The United States introduced new sanctions on Nov. 21, targeting dozens of Russian banks, including Gazprombank, securities registrars, and financial officials. Bayraktar said that the country is seeking a sanctions exemption for Gazprombank, which Ankara uses to pay Moscow to secure Turkish energy supplies.
Presently, Russia stands as Turkey's primary provider of natural gas, supplying over 40% of its consumption last year.
"These sanctions will affect Turkey. We cannot pay, if we cannot pay we cannot buy the goods. The foreign ministry is in talks," Bayraktar told reporters.
The U.S. had previously refrained from targeting Gazprombank to allow European countries to continue paying for Russian gas supplies, as the bank is the primary channel for energy-related payments. Despite the past restraint, the U.S. Treasury Department said that the most recent sanctions "will make it harder for the Kremlin to evade U.S. sanctions and fund and equip its military."
The Financial Times noted in its reporting that Russia used Gazprombank to purchase military equipment, pay soldiers, and compensate the families of those killed in the war in Ukraine.
"If such an exemption is not granted to Turkey it will directly impact us. At this point Russia is not the target, Turkey is the direct target," Bayraktar added.
The new U.S. sanctions are intended to close one of Russia's few remaining avenues for international banking, barring Gazprombank from conducting transactions in dollars.
Turkey began discussions on the sanctions exemption with the United States when it was notified of the incoming sanctions. Both countries are still discussing a possible waiver.
Bayraktar previously told the Financial Times in April the country was in talks with U.S.-based ExxonMobil to secure a long-term liquified natural gas (LNG) deal worth billions of dollars, aiming to reduce reliance on Russian natural gas.
On Nov. 26, a source familiar with the plans told Reuters, that Gazprom, Russia’s state-controlled gas company, is planning for a scenario in which no natural gas will flow to Europe through Ukraine after Dec. 31, 2024.
Olena Goncharova
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