The United States on Thursday sanctioned Russia’s two largest oil companies, Rosneft and Lukoil, for Moscow's lack of serious commitment to a peace process to end the war in Ukraine.
Rosneft is a vertically integrated energy company specialising in the exploration, extraction, production, refining, transport, and sale of petroleum, natural gas, and petroleum products. Lukoil engages in the exploration, production, refining, marketing, and distribution of oil and gas in Russia and internationally.
Rosneft also owns a 49.13% stake in India-based Nayara Energy Ltd., which operates India's second-largest refinery at Vadinar in Gujarat with a capacity of 20 million tons per year.
"Today’s actions increase pressure on Russia’s energy sector and degrade the Kremlin’s ability to raise revenue for its war machine and support its weakened economy," the US government said in a statement.
“Now is the time to stop the killing and for an immediate ceasefire,” said US Treasury 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. Treasury is prepared to take further action if necessary to support President Trump’s effort to end yet another war. We encourage our allies to join us in and adhere to these sanctions."
Violations of sanctions may result in the imposition of civil or criminal penalties on US and foreign persons.
The curbs mark a U-turn for President Donald Trump, who had held off on major sanctions and announced earlier this month that he would meet Putin in Europe in the coming weeks.
Washington has pressured Russian energy purchasers like India and China to cut imports to strain the Kremlin's finances and force a ceasefire in Ukraine.
Western countries have so far avoided directly hitting Russian energy exports to limit supply disruptions that may spike oil prices globally.
Following the sanctions announcement, crude oil prices immediately jumped, with international benchmark Brent advancing as much as 3% on Thursday to trade above $64 a barrel. The renewed threat of disruption to Russian supplies galvanises a global oil market that has been bracing itself for a dramatic supply glut.
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