The pipeline operator Turkstream will be able to operate without a problem after it moves its headquarters from Netherlands to Hungary, bypassing the sanctions imposed on Russia‘s energy products due to an agreement it has signed with the United States, Hungarian Foreign Minister Péter Siyarto said today.

The operator of the South Stream Transport B.V. gas pipeline, a subsidiary of Kremlin-controlled Gazprom, has been facing litigation at its current headquarters in the Netherlands over Russia’s actions in Ukraine. Gazprom did not respond to a request to comment on the matter.

Hungary continues to rely on hydrocarbon imports from Russia despite the ongoing conflict in Ukraine and related Western sanctions, drawing criticism from several of its allies in the European Union and NATO.

“With the transfer of the headquarters of the managing company from the Netherlands to Hungary, the Turkstream pipeline will be able to operate without interruptions in the coming period despite any legal and economic attacks,” Shillarto said in Moscow during a briefing broadcast via his Facebook page.

Through Turkstream pipeline Turkey helps Moscow to bypass sanctions

Russia and Turkey officially launched the Turkstream pipeline, which has the capacity to transport 31.5 million cubic meters per year, in January 2020. The pipeline allows Moscow to bypass Ukraine as a transit route to Europe and channel Russian gas to southern Europe via the Black Sea and Turkey

The deal ensures that transfers related to Russian gas flow through Turkstream will not be subject to U.S. sanctions, he said.

Last month the United States exempted Hungary for a year from U.S. sanctions on imports of Russian oil and gas, following a request by the Hungarian prime minister during his meeting with President Donald Trump in Washington.

Orban met separately with Russian President Vladimir Putin in Moscow last month, saying the visit was aimed at “ensuring the security of Hungary’s energy supply for the winter and next year.”