On October 22-23, 2025, the US administration announced large-scale sanctions against Russia’s major oil companies—Rosneft and Lukoil—and 33 of their subsidiaries. The measures include freezing assets, prohibiting transactions involving US persons, and potential secondary sanctions for foreign financial entities continuing cooperation with targeted companies.
Restrictions affect not only the main energy market players but also all companies where Rosneft or Lukoil own more than 50%. This threatens future contracts between Russia and its partners, particularly India and China.
The sanctions allow existing contracts to be completed by November 21, 2025. Indian state-owned firms have already reduced oil purchases from Russia to a minimum and are reconsidering agreements. Chinese companies are showing a similar response.
After the announcement, shares of leading Russian energy and banking companies sharply fell on the Moscow Stock Exchange. Rosneft’s profits dropped 68% in the first half of 2025, while Lukoil’s fell by 26.5% in 2024. Global oil prices saw only moderate increases.
The European Union strengthened its own sanctions, introducing the 19th package that, for the first time, includes a ban on Russian LNG imports, expanding the blacklist by 117 ships and 45 organizations.
Analysts see this as the most significant package during Donald Trump’s second presidential term, aimed at reducing Russian energy revenues. The next developments will depend on responses from major importers like China and India, and further US actions.
