Yesterday, the US Secretary of the Treasury officially announced new sanctions against Russia’s oil companies Rosneft and Lukoil. The move was prompted by the Russian leadership’s refusal to engage in serious peace negotiations regarding Ukraine. Dozens of subsidiaries related to oil and gas extraction, processing, and transportation across Russia were also blacklisted.
The sanctions prohibit these companies from conducting business in the United States and expose international partners to the risk of secondary restrictions. Analysts point out that this will severely complicate Russian companies’ activities on the global oil market, especially in countries like India and other third parties where the targeted companies’ subsidiaries operate.
Immediately after the announcement, Brent crude oil prices rose by more than 4%, reflecting expectations of reduced supply. For Russia, whose budget significantly depends on oil revenues, this means a potential drop in income. The restrictions apply not only to the main companies but also to all subsidiaries with more than 50% ownership by Rosneft and Lukoil.
Senior US officials stated their readiness to introduce further measures if needed to support the process of ending the war. The US encourages allies to join the sanctions policy. President Trump expressed hope that the sanctions would be short-lived and effective against Putin, though he acknowledged their delayed effect.
The Kremlin has offered limited official comment, focusing on rhetoric about escalation and negative appraisals of the decision, while responding with demonstrations of military power. Russia could lose up to 35% of its budget revenues if oil supplies are reduced. Experts emphasize that the true impact depends on both sales volumes and global oil prices. Europe is also preparing a new package of sanctions in response.
