U.S. Treasury sanctions Russia’s largest oil companies amid Ukraine war

Investing.com -- The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) imposed new sanctions on Russia’s energy sector Wednesday, targeting the country’s two largest oil companies in response to Moscow’s continued war in Ukraine.

The sanctions designate Open Joint Stock Company Rosneft Oil Company (Rosneft) and Lukoil OAO (Lukoil), along with 34 of their Russia-based subsidiaries, as part of efforts to pressure Russia into agreeing to a ceasefire.

"Now is the time to stop the killing and for an immediate ceasefire," said Treasury Secretary Scott Bessent. "Given President Putin’s refusal to end this senseless war, Treasury is sanctioning Russia’s two largest oil companies that fund the Kremlin’s war machine."

The action blocks all property and interests in property of these companies that are in the United States or controlled by U.S. persons. Any entities owned 50 percent or more by Rosneft or Lukoil are also blocked, even if not specifically designated.

Rosneft is a vertically integrated energy company involved in exploration, production, refining, transport, and sale of petroleum and natural gas. Lukoil engages in similar activities both in Russia and internationally.

The Treasury Department warned that foreign financial institutions conducting significant transactions with these designated entities risk being sanctioned themselves. U.S. persons are generally prohibited from engaging in transactions involving the property of blocked persons unless authorized by OFAC.

Secretary Bessent indicated the Treasury is "prepared to take further action if necessary to support President Trump’s effort to end yet another war" and encouraged U.S. allies to join and adhere to these sanctions.

The sanctions are designed to degrade Russia’s ability to fund its military operations and support its economy while pushing for serious peace negotiations to end the conflict in Ukraine.

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