US Extends License for Kazakh Transit of Russian Oil to China Until 2027

The United States has extended a special license allowing Kazakhstan to transit Russian oil to China until March 19, 2027. The decision, made following consultations with the U.S. Department of the Treasury, preserves a crucial logistical route for global energy supplies.

The authorization enables Kazakhstan to continue transporting approximately 10 million tons of Russian oil annually—equivalent to about 200,000 barrels per day—to China. Discussions are reportedly underway to potentially increase this volume to 12.5 million tons per year.

This extension comes against a backdrop of instability in global oil markets, exacerbated by conflict in the Middle East and disruptions in key shipping lanes like the Strait of Hormuz. By maintaining this supply route, the license helps alleviate pressure on Russia, which would otherwise need to find alternative methods to deliver contracted volumes to China, especially following Ukrainian drone attacks on Russian Baltic Sea oil infrastructure.

For Kazakhstan, the license is economically vital. Without it, the transit operations would be prohibited due to U.S. Sanctions imposed on Russia's Rosneft in 2025. The state-owned pipeline operator KazTransOil earns an estimated $150 to $190 million annually from these transit fees.

Industry expert Askar Ismailov explained that the license also serves U.S. Interests by acting as a tool to curb oil price inflation, ensuring additional volumes remain available on the market. The decision follows a previous extension granted until April of this year and an initial application made by Kazakhstan's Ministry of Energy in late last year.