Azernews.Az

Akbar Novruz

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The United States has granted Kazakhstan an extension allowing it to continue transiting Russian pipeline crude to China until March 19, 2027, the Central Asian nation’s energy ministry confirmed, AzerNEWS reports.

The waiver, coordinated with the US Treasury, follows the expiration of the previous license in April 2026, issued by the Treasury’s Office of Foreign Assets Control (OFAC), according to Interfax.

The license enables Kazakhstan to continue transiting roughly 10 million tons of Russian crude annually—about 200,000 barrels per day—to China, the world’s largest energy consumer. Moscow and Astana are also negotiating to increase annual volumes to 12.5 million tons.

The extension comes amid heightened global energy volatility caused by the ongoing Middle East conflict. Iran has effectively closed the Strait of Hormuz, forcing many Asian buyers to seek alternative crude supplies at elevated prices.

President Donald Trump recently indicated that the United States could withdraw from Iran within weeks, suggesting that an agreement with Tehran may not be necessary to end the conflict. His remarks temporarily pushed global oil prices below $100 per barrel, even as the region’s energy supply outlook remains uncertain.

The US waiver also provides relief to Russia, which would otherwise need to find alternate routes to deliver crude to China amid disruptions caused by Ukrainian drone attacks on Baltic Sea oil-export terminals.