U.S. removes sanctions on KTK and Tengizshevrol companies.
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The US Treasury Department has given the green light for oil services related to the Caspian Pipeline Consortium (CPC) and Tengizchevroil projects, as per our latest report.
According to information on the department's official website, the Office of Foreign Assets Control (OFAC) has issued a general license authorizing oil services for the CPC and Tengizchevroil projects. This license effectively lifts the prohibitions that would have been imposed as a result of the determination made on January 10, 2025.
Interestingly, it was on January 10, 2022, that the U.S. Treasury Department imposed a ban on U.S. companies providing services to Russian enterprises for oil production and petroleum product production in Russia. However, this ban was lifted indefinitely from its implementation date on February 27, 2022.
From that date forward, the US authorities prohibited the export, re-export, sale, or supply, either directly or indirectly, of oil services to any person in Russia. This ban covered a wide range of services, including exploration, drilling, production, processing, storage, maintenance, transportation, purchase, and sale of oil and petroleum products, as well as activities that provide Russia with the capacity to develop hydrocarbon deposits and maintain or expand domestic production and processing of UGS.
While one of the largest shareholders of CPC is the Russian company Transneft (24%), which is in the U.S. sanctions list, the ban does not appear to affect its involvement with the CPC. The CPC pipeline connects oil fields in Kazakhstan with a marine terminal in Novorossiysk, spanning a distance of 1,500 km.
Tengizchevroil is the largest oil-producing enterprise in Kazakhstan, with notable shares held by American companies. Its main stakeholders include Chevron Corp. (50%), ExxonMobil Kazakhstan Ventures Inc (25%), Kazakhstan via "KazMunaiGas" (20%), and LUKOIL (5%).
It's worth considering that the US Treasury Department's decision to permit ongoing participation in these projects suggests a nuanced approach to sanctions, possibly influenced by broader diplomatic or economic factors.
The green light from the US Treasury Department allows for the provision of oil services to the Caspian Pipeline Consortium (CPC) and Tengizchevroil projects, which fall within the energy and finance industries. This decision indicates a potential complex strategy in sanctions enforcement, likely affected by broader diplomatic or economic considerations.
