September 17, 2023

US and UK extend Sakhalin-2 Project exemption

On September 14, 2023, the US and UK extended the expiration date of the Sakhalin-2 Project exemption from the Oil Price Cap policy until June 28, 2024.  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 as long as the Russian oil or oil product is sold at or below the established price cap.  Since its implementation in December 2022, the price cap policy has exempted the Sakhalin-2 Project, which permits the shipment of Russian oil from the Project to Japan.  In order to extend these permissions until June 28, 2024, the US Office of Foreign Assets Control issued General License 55A pursuant to Russian Harmful Foreign Activities Sanctions Regulations, 31 CFR part 587, and the UK Office of Financial Sanctions Implementation amended General License INT/2022/2470156 under regulation 64 of the Russia (Sanctions) (EU Exit) Regulations 2019.

US General License 55A | UK Publication Notice – General licences – INT/2022/2469656, INT/2022/2470256, INT/2022/2470056, INT/2022/2470156,  INT/2023/2660772 and INT/2023/3074680