The operator of the TurkStream gas pipeline that transports Russian gas to Europe via Türkiye will move its main headquarters from the Netherlands to Hungary, Foreign and Trade Minister Peter Szijjarto announced on Tuesday.
The pipeline runs for 930 kilometers (580 miles) under the Black Sea from the Russian resort city of Anapa to Kıyıköy in northwestern Türkiye. It then connects to overground pipelines that run up through the Balkans to western Europe.
It has an annual capacity of 31.5 billion cubic meters (bcm). About 15.75 bcm is designated for supplies to Türkiye's domestic customers, and the rest is earmarked for European countries.
Szijjarto said thanks to an agreement with the United States, the company operating TurkStream will be able to function without any problems after moving its main headquarters to Hungary.
According to the agreement, financial transactions related to TurkStream's operations will not be subject to U.S. sanctions, Szijjarto told a press conference in Moscow.
Hungary has maintained its reliance on Russian energy since the start of the conflict in Ukraine, prompting criticism from several European Union and NATO allies.
Türkiye is the only transit route left for Russian gas to Europe after Ukraine chose not to extend a five-year transit deal with Moscow when it expired at the beginning of the year.
On Monday, Prime Minister Viktor Orban said they had agreed with President Recep Tayyip Erdoğan that Türkiye will guarantee that Russian gas can continue to flow to Hungary
Hungary signed a 15-year deal in 2021 with Russia to buy 4.5 billion cubic metres of gas annually, and increased purchases from Gazprom last year, importing some 7.5 billion cubic metres of Russian gas via the Turkstream pipeline.
"Today I agreed with the president that you, Turkey, will guarantee the route so that we can transport (gas) from Russia to Hungary," Orban told a joint press conference with Erdoğan following their talks in Istanbul.
He also said that Hungary has received 7.5 billion cubic meters of gas through the Turkstream pipeline so far this year. Orban said Hungary had no other source options and thanked Türkiye for ensuring gas transfer and transportation.
Last month, the United States granted Hungary a one-year exemption from U.S. sanctions for using Russian oil and gas after Orban pressed his case for a reprieve during a friendly meeting with President Donald Trump in Washington.
Orban also met Russian President Vladimir Putin in Moscow at the end of November. He said on Facebook at the time that he was visiting Moscow "to ensure Hungary's energy supply is secured for the winter and next year."