U.S. Treasury grants temporary exemption to Gazprombank deals related to civilian nuclear energy

The U.S. Treasury Department has temporarily suspended sanctions on transactions with Gazprombank related to civilian nuclear energy. The special exemption expires on June 30, 2025. The government’s decision applies to operations conducted for projects launched before November 21, 2024 — before the United States imposed sanctions on Gazprombank, one of the main channels for payments for Russian oil and gas. 

Notably, the U.S. Treasury Department’s exemption does not extend to Hungary’s Paks-2 nuclear power plant project.

In November, the U.S. imposed sanctions on Gazprombank and its subsidiaries in Hong Kong, Luxembourg, Switzerland, South Africa, and Cyprus, arguing that Russian authorities use the bank to procure equipment for the war in Ukraine and process soldiers’ salaries.

Beginning in March 2022, Gazprombank played a central role in the currency scheme developed to collect payments from European buyers of Russian gas. However, in early December, Vladimir Putin rescinded the requirement that foreign buyers pay for gas exclusively through this financial institution.

In early December, Bloomberg reported that E.U. officials were “pressing the U.S.” to find ways to “mitigate” American sanctions on Gazprombank, warning that they threatened the region’s energy supply security. Turkey has also requested exemptions from U.S. sanctions against Gazprombank.