US lifts sanctions on Lukoil’s oil projects in Kazakhstan: expert explains how it affects the war in Ukraine
19 November 15:16
The United States has granted special exemptions from sanctions for large oil and gas projects in Kazakhstan, which are being implemented with the participation of the Russian company Lukoil. This decision has raised questions about its impact on sanctions pressure on Russia, but experts assure that this situation does not pose a threat to Ukraine, reports
The essence of exceptions and strategic importance
The special operating permits were issued by the US Treasury Department’s Office of Foreign Assets Control (OFAC).
According to Kazakhstan’s Energy Minister Erlan Akenzhenov, Washington has granted the permits for the following:
- Karachaganak project
- “Tengizchevroil project
- Caspian Pipeline Consortium (CPC)
These exemptions allow for the uninterrupted operation of strategic facilities that are critical to Kazakhstan’s economy and the stability of the Caspian region. Importantly, the exemptions apply only to operational activities – key restrictions on changing or transferring stakes in projects remain in place.
Why this will not help Moscow
Energy expert Gennadiy Ryabtsev in a commentary
“No, not at all. These projects relate to the development of fields within Kazakhstan and the creation of appropriate infrastructure for the needs of Kazakhstan and China,” Ryabtsev emphasized.
According to him, the extracted raw materials and oil products will not enter Ukraine and are not subject to European sanctions. The project is “internal to Kazakhstan” and uses more technologies provided by Lukoil than generates significant oil and gas revenues for the Russian Federation.
In addition, the issue of these joint projects was raised during a meeting between the leaders of Central Asian states and the American president, and no conflicts arose.
What is known about US sanctions against Lukoil?
In late October, the United States imposed sanctions on Lukoil as part of a campaign of pressure on the Kremlin to end the war in Ukraine. Within a month, all companies that do not want to be subject to secondary US sanctions must end any cooperation with the Russian oil giant. “Lukoil, for its part, has announced the sale of its foreign assets.
According to the sources, interest in Lukoil’s portfolio abroad has increased in recent days, and potential buyers from the US, Europe and the Gulf countries have applied to the US Treasury for approval of transactions with the company. The day before, Reuters sources said that Lukoil’s assets could be sold to Carlyle, a large American investment fund. It is currently studying a possible deal and preparing to submit an application to the US Treasury, the sources said.
Prior to that, Washington blocked the sale of Lukoil’s assets to the Swiss trader Gunvor, which is associated with a friend of Russian President Vladimir Putin, Gennady Timchenko. The US Treasury Department called the company a “Kremlin puppet.”
“Lukoil owns three refineries in Europe, stakes in fields in Kazakhstan, Uzbekistan, Iraq, Mexico, Ghana, Egypt and Nigeria, as well as hundreds of gas stations around the world, including the United States.
