Long-arm jurisdiction: The U.S. extends the transit period for Russian oil transported through Kazakhstan to China by one year
Source: Kazinform News Agency — The Ministry of Energy of Kazakhstan announced that the authorization for Kazakhstan to transport Russian oil through its territory to China has been extended for one year.
The announcement states that after consultations with the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC), the validity of the transit permit for Russian oil via China has been extended to March 19, 2027.
It is understood that the energy ministries of Russia and Kazakhstan are currently in discussions regarding increasing transportation volumes. At present, Russian oil continues to be shipped to China under a special permit not subject to sanctions. The situation is being closely monitored.
Bloomberg reports that the U.S. government has received information from the Ministry of Energy of Kazakhstan indicating that Kazakhstan will be allowed to continue transporting Russian oil via pipeline to China until next March.
According to Interfax, the previous OFAC license was valid until this April.
Bloomberg notes that this license will allow Kazakhstan to transfer thousands of barrels of Russian oil to China. This move comes amid ongoing turmoil in the Middle East, which has caused instability in global oil markets.
The closure of the Strait of Hormuz by Iranian authorities has also placed Asian oil-consuming economies in difficulty.
Bloomberg adds that this U.S. action will also alleviate pressure on both Russia and China.
Under an agreement with Russia, Kazakhstan transports 10 million tons of oil annually to China via transit—equivalent to about 200,000 barrels per day.
Original article: toutiao.com/article/1861283720136716/
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