U.S. authorizes transactions for Russian oil supplies to Japan, several EU countries

23 November 2022, 12:06 PM
Lukoil's Kravtsovskoye oilfield at the Baltic Sea, September 16, 2021. (Photo:REUTERS/Vitaly Nevar)

Lukoil's Kravtsovskoye oilfield at the Baltic Sea, September 16, 2021. (Photo:REUTERS/Vitaly Nevar)

The U.S. Department of the Treasury has issued general licenses (GL) for carrying out transactions for the supply of crude oil from Russia to Japan, Bulgaria, Croatia, and EU countries, which do not include states that border the sea, the agency reported on Nov. 22. In effect, these licenses pro-vide a limited legal method to bypass the current oil-related sanctions measures on Russia.

In particular, GL 55 authorizes, until the end of Sept. 29, 2023, transactions that involve the oil extracted via the Sakhalin-2 project, a Russian oil and gas extraction project located on Sakhalin Island in the Pacific Ocean – though only if the oil is meant for Japanese import.

A separate GL, GL 57, also authorizes transactions to bypass sanctions if they involve ship-based emergencies or involve critical ship functions, including safe docking or anchoring, emergency repairs, or salvage operations.

Video of day

Additionally, the price cap for Russian oil, imposed by the sanctions regime, will not be applied in case of significant processing outside the country, and will be set after a technical exercise conducted by the Price Cap Coalition, the U.S. Department of the Treasury said.

Follow us on Twitter, Facebook and Google News

Ukraine Today
Fresh daily newsletter covering the top headlines and developments in Ukraine
Daily at 9am EST
Show more news