Ok, here is how the issue resolved if anyone run into it in a future... when import the keys with gpg it save them in a separate files under your profile... which not accessable via proxy account... sql server job agent run by sa... so what is needed is importing the public key under admin user on the server, be sure you edit the key and set trust to ultimate... otherwise the step may hang... After public key was imported under admin user... the job run without any issues.