US removes sanctions on Russia-associated worldwide oil project
(MENAFN) The U.S. government has lifted certain sanctions, allowing American and international companies to resume operations linked to a major Russia-involved oil export route. The Treasury Department issued General License No. 124 on Thursday, which permits previously restricted activities related to the Caspian Pipeline Consortium (CPC) and the Kazakh oil firm Tengizchevroil (TCO).
CPC, which includes U.S. oil giants Chevron and ExxonMobil among its stakeholders, is a critical pipeline that transports oil from Kazakhstan to Russia’s Black Sea coast, where it is then shipped globally. The 1,511-kilometer pipeline is responsible for more than 80% of Kazakhstan’s crude exports.
The license reverses a decision made on January 10 that had blocked petroleum-related services under Executive Order 14071, aimed at curbing support for Russian energy infrastructure. However, the U.S. has made exceptions for projects deemed vital to global energy markets or where non-Russian entities are heavily involved.
CPC is jointly owned by various corporations and governments. Russia holds a 24% share through its state-owned pipeline operator Transneft. Other major shareholders include Chevron, ExxonMobil, Russia’s Lukoil, and Kazakhstan’s state oil company KazMunayGas, along with smaller international firms.
Tengizchevroil, formed in 1993, oversees the massive Tengiz oil field in Kazakhstan and is jointly owned by Chevron (50%), ExxonMobil (25%), KazMunayGas (20%), and Lukoil (5%).
The newly issued license explicitly allows activities such as oil drilling, refining, transport, and marketing, as long as they are related to CPC or TCO. This follows General License No. 121, issued in January, which temporarily permitted certain services for these projects and remains in effect until June 28, 2025.
Earlier in the year, CPC operations were briefly suspended after two Ukrainian drone strikes damaged oil facilities on Russian soil. These incidents occurred after Presidents Vladimir Putin and Donald Trump agreed on a limited ceasefire, which included a mutual commitment to avoid targeting energy infrastructure.
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