On October 22, the United States imposed tough sanctions on Russian oil companies Rosneft and Lukoil, increasing pressure on the Kremlin over the war in Ukraine.
Points of attention
- Recent US sanctions target Russian oil giants Rosneft and Lukoil, impacting over 30 divisions involved in oil and gas production.
- The sanctions aim to pressure Russia financially, forcing the Kremlin to engage in peaceful negotiations to end the war in Ukraine.
- Assets and interests of sanctioned companies in the US are now blocked, with potential civil or criminal liability for violations.
The US imposed sanctions against Rosneft and Lukoil
The US Treasury Department, through its Office of Foreign Assets Control (OFAC), has imposed new sanctions against Russia to force Putin to engage in serious negotiations to end the war in Ukraine.
The sanctions are aimed at pressuring Russia's energy sector and limiting the revenues the Kremlin uses to finance the war and support the economy.
The new sanctions will affect the two largest Russian oil companies, Rosneft and Lukoil, as well as their numerous subsidiaries engaged in the production, processing, and sale of oil and gas in Russia.
The list includes more than 30 units of both companies, including oil fields, gas and oil refineries across the country.
All assets and interests owned by these companies in the United States or controlled by U.S. persons are now blocked and subject to mandatory reporting to OFAC. Violations of the sanctions may result in civil or criminal liability, and foreign financial institutions that conduct significant transactions with sanctioned companies risk secondary sanctions.
OFAC also emphasized that the sanctions are not intended to punish, but rather to change Russia's behavior and encourage it to engage in peaceful negotiations. The sanctions may be reviewed or lifted if U.S. law and relevant conditions are met.
"Now is the time to stop the killing and declare an immediate ceasefire. In response to President Putin's refusal to end this senseless war, Treasury is imposing sanctions on two of Russia's largest oil companies that are funding the Kremlin's military actions. We urge our allies to join in and abide by these sanctions," said U.S. Treasury Secretary Scott Bessant.
The EU also continues to increase economic pressure on Russia. It has become known that the new 19th sanctions package is aimed at limiting energy revenues, as well as countering the shadow fleet.
