US Hits Russian Energy Giants Rosneft and Lukoil with New Sanctions

The United States has imposed new, strict sanctions against Russian energy giants Rosneft and Lukoil, aiming to increase pressure on Moscow. The US Treasury Department officially announced that this move is due to Russia's "lack of serious commitment" to the peace process aimed at ending the war in Ukraine.

A statement from the US Treasury Department noted that the department is ready to take additional measures if necessary to "support President Trump's efforts to end the conflict."

The list of sanctions is quite comprehensive. They apply not only to the parent companies but also to their subsidiaries, specifically 28 structures of Rosneft and 6 of Lukoil. Moreover, the US Treasury Department clarified that the restrictions apply to any structure where Rosneft or Lukoil hold more than a 50% stake, even if those structures are not explicitly listed in the sanctions list.

Washington has set a one-month deadline to cease operations with the sanctioned companies. The Office of Foreign Assets Control has issued a special license allowing all transactions to be completed by November 21. Within the same period, it is also necessary to divest from the securities of the two companies. A separate license was issued to cease activities with Lukoil's gas stations located outside of Russia.

However, the sanctions have some exceptions. Like the United Kingdom, which imposed similar restrictions a week earlier, the US has also excluded internationally important projects in Azerbaijan and Kazakhstan from the sanctions: the "Caspian Pipeline Consortium" (CPC) and "Tengizchevroil." Transactions involving Rosneft and Lukoil in these projects are permitted under a separate license with an indefinite term.