Great relief for Turkey:  US exempts her from Gazprombank sanctions

Turkey has received an exemption for gas payments to Russia after the United States imposed sanctions on Gazprombank, Turkish Energy Minister Alparslan Bayraktar said on Friday in response to a question from Reuters.  The US  administration declined to comment on the topic.  A waiver was urgently needed, as Turkey  imports a third of her natural gas need from Russia through two pipelines.

 

The US imposed new sanctions on Russia’s Gazprombank in November, creating an obstacle for buyers of Russian gas, which had been using the bank to make payments. They have since been seeking clarification and exploring other ways to pay.

 

Turkey imports almost all its gas requirement and Russia is the top supplier, providing more than 50% of the country’s pipeline imports. Ankara’s pipeline gas imports from Russia stood at 21.1 bcm last year.

 

Turkey had requested an exemption in discussions with US officials so that it can continue paying for Russian natural gas imports via Gazprombank.

 

The U.S. imposed new sanctions on Russia’s Gazprombank in November, creating an obstacle for buyers of Russian gas, which had been using the bank to make payments. They have since been seeking clarification and exploring other ways to pay.

 

The US Treasury did not immediately return a request seeking comment on the waiver.

 

Bloomberg reported that officials in Ankara met with a Russian delegation in November to discuss alternative payment methods. Bayraktar did not comment on those discussions on Wednesday.

 

It is not clear whether Biden administration consulted Trump transition team about Turkey’s request for a waiver. Nevertheless, the background is perfect for a better Turko-American relationship under Trump 2.0 who recently praised Erdogan for his strong leadership.

 

Reuters, Ekathimerini, ParaAnaliz

 

 

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Published By: Atilla Yeşilada

GlobalSource Partners’ Turkey Country Analyst Atilla Yesilada is the country’s leading political analyst and commentator. He is known throughout the finance and political science world for his thorough and outspoken coverage of Turkey’s political and financial developments. In addition to his extensive writing schedule, he is often called upon to provide his political expertise on major radio and television channels. Based in Istanbul, Atilla is co-founder of the information platform Istanbul Analytics and is one of GlobalSource’s local partners in Turkey. In addition to his consulting work and speaking engagements throughout the US, Europe and the Middle East, he writes regular columns for Turkey’s leading financial websites VATAN and www.paraanaliz.com and has contributed to the financial daily Referans and the liberal daily Radikal.