U.S. Extends License Allowing BP to Handle Payments With Sanctioned Iranian and Russian Partners

The U.S. extended a license that allows BP to use a workaround to handle payments involving sanctioned Iranian and Russian partners in a major gas project in Azerbaijan. It enables the company to manage financial transactions with partners that would otherwise be restricted under U.S. sanctions on Iran and Russia.

The extension ensures continued participation without requiring direct dealings that violate sanctions rules.

BP operates the project in partnership with several international and regional energy companies, some of which maintain ties to sanctioned entities. The U.S. license provides a specific exemption for payment processing mechanisms that avoid prohibited channels.

This arrangement has been in place for years and requires periodic renewal by U.S. authorities. The latest extension was granted to prevent disruption to energy supplies from the project.

U.S. sanctions target Iranian and Russian entities involved in energy and other sectors. The license does not lift broader sanctions but creates a narrow carve-out for this specific multinational project. BP must adhere to strict compliance requirements under the terms of the authorization.

The extension was reported on May 6, 2026. It allows the project to maintain stable operations amid ongoing geopolitical tensions affecting global energy markets. Further renewals will be required to sustain the arrangement over the long term.