Treasury's Office of Foreign Assets Control (OFAC) has issued Russia-related General License 124, "Authorizing Petroleum Services Related to the Caspian Pipeline Consortium and Tengizchevroil."
The previous license with similar content - No. 121, which also included the Sakhalin-2 project - expires on June 28, 2025.
The Caspian Pipeline Consortium (CPC) and Tengizchevroil (TCO) are linked through the CPC pipeline, which is a major export route for Kazakh oil. TCO, a joint venture led by Chevron, operates the Tengiz oil field, which is a significant source of oil for the CPC pipeline.
Additionally, OFAC has published an updated Russia-related Frequently Asked Question (FAQ 1216), "What action has Treasury taken with regard to the provision of petroleum services to Russia?"
General License (GL) 121, issued earlier, temporarily authorized certain services for CPC, Tengizchevroil, and Sakhalin II operations. On May 15, 2025, GL 124 extended authorizations for CPC and Tengizchevroil without expiration.
Exemptions to the determination include:
Services involving medical, agricultural, or environmental isotopes (e.g., Carbon-13);
Certain maritime transport services involving Russian oil sold at or below the price cap;
Services related to the wind-down or divestiture of non-Russian-owned entities in Russia.
Further details are provided in FAQ 1217.
European Commission President Ursula von der Leyen announced Friday that the European Union will impose new sanctions targeting Russia’s energy sector, including restrictions on the Nord Stream 1 and 2 gas pipelines and nearly 200 vessels involved in Moscow’s so-called “shadow fleet” transporting oil.
The forthcoming 17th sanctions package aims to reduce Kremlin revenues by tightening the oil price cap and disrupting alternative shipping methods used to bypass existing restrictions. The package is scheduled for formal adoption by EU foreign ministers on May 20. [13757]
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