The United States has issued a sanctions waiver allowing continued international cooperation on a major Russia-linked oil project that plays a key role in global energy markets.
On Thursday, the US Treasury Department released General License No. 124, which permits US and foreign companies to resume oil-related activities with the Caspian Pipeline Consortium (CPC) and Tengizchevroil (TCO) — two critical players in Kazakhstan’s crude oil export infrastructure. The decision softens earlier sanctions enacted in January 2024 under Executive Order 14071, which targeted services tied to Russian energy projects.
The CPC operates a 1,511-kilometer pipeline transporting Kazakh oil from western Kazakhstan through Russian territory to a terminal on the Black Sea. Over 80% of Kazakhstan’s oil exports pass through this route. While Russia’s state-owned Transneft holds a 24% stake in the pipeline, major US stakeholders include Chevron and ExxonMobil, alongside Lukoil and KazMunayGas.
The updated license clarifies that activities including drilling, refining, transportation, and marketing related to CPC and TCO are exempt from penalties under the current sanctions regime—provided they are limited to those entities.
Tengizchevroil oversees Kazakhstan’s massive Tengiz oil field. Formed in 1993, TCO is owned by Chevron (50%), ExxonMobil (25%), KazMunayGas (20%), and Lukoil (5%). The project's strategic importance led to the issuance of a prior license (General License No. 121) in January, temporarily exempting it from the restrictions. That license remains valid until June 28, 2025, though the new guidance broadens the range of permitted activities.
While the Biden and Trump administrations have both pushed for restrictions on Russian energy, exceptions have been carved out for projects critical to global supply chains. This latest action reflects Washington’s balancing act between punishing Russia and avoiding disruptions to international energy flows.
Earlier this year, CPC infrastructure inside Russian territory was targeted in drone strikes attributed to Ukraine, briefly halting operations. The incidents occurred despite a partial US-brokered ceasefire that included a mutual agreement to avoid attacks on energy facilities.
The Treasury’s move signals that Washington continues to view the stability of global oil markets as a strategic imperative—even when it intersects with politically sensitive Russia-linked ventures.