Turkey is engaged in talks with the United States to obtain an exemption from sanctions imposed on Gazprombank, Russia’s main lender, to guarantee its payments for natural gas imports. These negotiations come after Washington extended its sanctions to 118 entities and individuals linked to the Russian financial sector, as part of measures aimed at weakening Russia’s economic and military capabilities in the Ukrainian conflict.
Turkish Energy Minister Alparslan Bayraktar warned on Monday that the absence of such a waiver could seriously harm his country’s energy security. “If we do not obtain this exemption, it will be impossible to settle our payments to Russia, which could lead to serious consequences,” he told reporters before a cabinet meeting in Ankara.
Gazprombank is a central player in energy trade between Turkey and Russia, particularly for natural gas payments. With around 42% of its gas needs covered by Russia, Turkey is heavily dependent on this partnership to meet its energy needs. This dependence highlights Ankara’s diplomatic challenges as it navigates its relations with the West and Moscow.
A precedent with sanctions against Iran
Minister Bayraktar recalled that precedents exist in terms of waivers granted by the United States, particularly for transactions with Iran despite the sanctions targeting the Tehran regime. However, he underlined the complexity of the procedures necessary to obtain such an exemption. “Lifting these sanctions takes time and numerous negotiations,” he said.
This waiver request comes as President Joe Biden’s administration nears the end of its term, scheduled for January 2025. Bayraktar also questioned the timing of sanctions, which he said risks further complicating relations between Washington and Ankara in an already tense context.
A delicate balance in the Ukrainian conflict
Since the start of the war in Ukraine in February 2022, Turkey has tried to maintain a neutral position while playing a mediating role. Although Ankara has supplied Ukraine with military drones used in the conflict, it has resisted Western calls to impose sanctions against Russia. This position allowed it to preserve its strategic links with Moscow, particularly in the energy sector.
This double diplomatic game allowed Turkey to maintain its role as intermediary in peace negotiations, while maintaining the country’s energy supply. However, the recent wave of US sanctions against Gazprombank could force Ankara to review its strategy.
A gas hub project in progress
As part of its energy strategy, Turkey aspires to become a regional gas trading center. To this end, discussions are underway with Russia to establish a hub in Istanbul, the country’s largest city. Minister Bayraktar confirmed the sending of a memorandum of understanding to Gazprom, aimed at strengthening this collaboration. However, despite these ambitions, Turkey’s current dependence on Russian gas remains a major obstacle to achieving these goals.
