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US extends permits for certain activities related to Sakhalin-2 project until June 18

In June 2024, the US Treasury exempted oil supplies from the Sakhalin-2 project to Japan from the price cap until June 28, 2025

WASHINGTON, December 17. /TASS/. US authorities have extended the authorizations exempting certain activities related to the Sakhalin-2 project from US sanctions until June 18, 2026, the US Treasury Department announced.

It clarified that the exempts "are authorized through 12:01 a.m. eastern daylight time, June 18, 2026."

In June 2024, the US Treasury exempted oil supplies from the Sakhalin-2 project to Japan from the price cap until June 28, 2025. The license published at the time stated that all operations prohibited by the decision of November 21, 2022... related to the maritime transportation of crude oil from the Sakhalin-2 project were permitted. The US Treasury emphasized that it concerned products intended exclusively for import to Japan.

The US Treasury later added that the permit also extended to the project-related transactions linked Gazprombank.

In June, the license was extended until December 19. It also included a new clause, according to which, until that time, transactions related to the Sakhalin-2 project are exempt from the sanctions imposed by the US on January 10 of this year. Washington then tightened and expanded restrictions against the Russian energy sector, hoping to reduce the price of Russian oil. As the US Treasury Department clarified, the new license replaces the previous one.

Sakhalin-2 is an oil and gas project implemented under a production sharing agreement. As part of the project the Piltun-Astokhskoye and Lunskoye fields on Sakhalin are being developed.

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