US grants Türkiye exemption from Gazprombank sanctions

Turkish Energy and Natural Resources Minister Alparslan Bayraktar announced that the United States has granted Türkiye an exemption from sanctions on Gazprombank, Russia’s third-largest bank. The decision enables Türkiye to continue its natural gas payments to Russia without facing penalties.

Speaking to Bloomberg, Bayraktar explained that Türkiye can continue making natural gas payments to Russia via the bank despite its inclusion on the U.S. sanctions list.

Following extensive discussions between Türkiye’s Energy and Natural Resources Ministry, the Foreign Ministry, and their U.S. counterparts, Bayraktar confirmed that Türkiye’s exemption request had been approved.

Türkiye’s persistence on Gazprombank sanction exemption

Gazprombank’s addition to the U.S. sanctions list posed challenges for Türkiye’s energy trade with Russia. Bayraktar stated that Türkiye had consistently emphasized its need for an exemption to maintain natural gas payments.

He also noted parallels with a similar exemption granted to Türkiye during U.S. sanctions on Iran. Without the exemption, Bayraktar suggested that Türkiye itself could face sanctions-related repercussions.

Ahead of the U.S. decision, Türkiye held talks with Russian officials to explore alternative payment mechanisms for natural gas. Discussions included scenarios that could arise if the exemption was not granted. In late November, Russian representatives visited Ankara for meetings with Turkish bureaucrats to evaluate potential solutions.

However, Bayraktar declined to comment on specific alternative payment methods discussed with Russia.