The U.S. has extended the license for the transit of oil from Russia to China via Kazakhstan

The U.S. government has extended Kazakhstan’s license to transport Russian oil via pipeline to China until March 19, 2027. 

The decision was made by the Office of Foreign Assets Control (OFAC) following consultations between the U.S. Treasury Department and Astana, Bloomberg reports. The previous license was set to expire in April 2026, but amid global market instability caused by the war in the Middle East, the exemption was extended by nearly a year.

Each year, approximately 10 million tons of oil from Russia are transported through Kazakhstan, amounting to roughly 200,000 barrels per day. The parties are currently negotiating an increase in annual supply volumes to 12.5 million tons. This move is attributed to the critical situation in the Strait of Hormuz, which Iran has effectively blocked, forcing Asian buyers to seek alternative routes for energy exports.

The extension of the license reduces logistical pressure on Russia, especially given the attacks by Ukrainian drones on Russian oil terminals. At the same time, global prices were influenced by U.S. President Donald Trump’s statements regarding the likely resolution of the conflict in Iran within the coming weeks, which has already led to oil prices falling below $100 per barrel. Despite sanctions, Washington is compelled to maintain the stability of fuel supplies to prevent a global energy crisis.

On March 31, the U.S. temporarily lifted sanctions on several Russian vessels. This applies to container ships and tankers flying the Russian flag that were already en route. New shipments and transactions with Iran remain prohibited.

U.S. Secretary of War Pete Hagseth revealed details of the coalition’s confrontation with Russia, China, and Iran during a briefing at the Pentagon.