OFAC issues general license to extend Sakhalin-2 exemption from the Oil Price Cap policy

On June 26, 2024, the U.S. Department of the Treasury’s Office of Foreign Assets Control issued General License 55B under Russian Harmful Foreign Activities Sanctions Regulations, 31 CFR part 587, in order to extend the exemption of the Sakhalin-2 project from the Oil Price Cap Policy until June 28, 2025.  The Oil Price Cap policy generally permits the maritime shipment of Russian crude oil, oil products and the provision of related services to third countries, or from one third country to another, as long as the Russian oil or oil product is sold at or below the established price cap.  Under General License 55B, the maritime shipment of Sakhalin-2 byproduct is exempt from the Oil Price Cap policy as long as it is solely for importation into Japan.  General License 55B effectively replaces and supersedes GL 55A in its entirety.

General License 55B