U.S. Extends Waiver for Sakhalin-2 LNG Project, Ensures Russian Gas Flow

The U.S. has extended a waiver permitting oil sales from Russia's Sakhalin-2 project until June 18 next year, supporting liquefied natural gas production. This decision aids U.S. ally Japan, which relies on Russian LNG, despite prior sanctions and trade pressures from the Biden and Trump administrations.

The United States has decided to extend a waiver for oil sales from Russia's Sakhalin-2 project, ensuring the flow of liquefied natural gas (LNG) continues unimpeded until June 18 next year. This strategic move is crucial for Japan, a key ally of the U.S. that sources around 9% of its LNG from Russia.

The general license issued by the U.S. Treasury Department allows transactions with the Sakhalin-2 project, serving as a waiver to sanctions initially imposed by former President Joe Biden in 2022 amid Russia's invasion of Ukraine. This comes despite the Trump administration's pressure on China, India, and Japan to minimize Russian oil and LNG purchases during trade negotiations.

Moreover, the Treasury Department has also extended a waiver allowing transactions involving Russian banks, including Gazprombank, related to civil nuclear power, thereby maintaining the global energy balance and fostering diplomatic ties.

(With inputs from agencies.)