U.S. extends sanction exemption for Sakhalin-2 project for six months

MOSCOW. June 19 (Interfax) - The U.S. Treasury Department has extended an exemption from sanctions for Russia's Sakhalin-2 offshore oil and gas project to allow oil exports to Japan, provision of oilfield services and transactions involving Gazprombank, including transactions involving Sakhalin Energy LLC until December 19, 2025, the department's Office of Foreign Assets Control (OFAC) said in a press release.

The United States imposed a ban on provision of services related to oil production in Russia, both export and re-export of these services, on January 10, 2025, but an exemption was made for Sakhalin-2.

OFAC said the ban concerns services related to exploration, drilling, well completion, production, refining, storage, servicing, transportation, acquisition and sale of crude oil and oil products, as well as any types of activities that enable Russia to develop oil and gas fields, and maintain or expand domestic hydrocarbon production and refining.