U.S. Treasury Extends Sakhalin-2 Oil Sales Waiver

The U.S. Treasury has extended the allowance for oil sales from Russia's Sakhalin-2 project until June 18 next year. This decision supports Japan, a major U.S. ally, by ensuring continued liquefied natural gas supplies, despite previous sanctions imposed by the Biden administration in 2022.

The U.S. Treasury has granted an extension for oil sales from Russia's Sakhalin-2 project, allowing these transactions to continue through June 18 of the following year. This extension is crucial for maintaining the production of liquefied natural gas (LNG) from the facility.

This move comes as a relief to Japan, an important ally of the United States, which relies on Sakhalin-2 for approximately 9% of its LNG imports. The decision underscores the economic ties and energy dependencies despite existing geopolitical tensions.

Issuance of the general license by the Treasury Department effectively waives sanctions on the Sakhalin-2 project, originally imposed by the Biden administration in 2022. The waiver reflects complex diplomatic and economic considerations, balancing sanction policies with strategic energy partnerships.

(With inputs from agencies.)