U.S. sanctions on Russia’s top oil companies, Rosneft and Lukoil, are already lowering Russian oil revenues and are expected to reduce the amount of oil Russia sells in the future.
The measures, announced on 22 October, are one of the strongest U.S. sanctions since Russia’s full-scale invasion of Ukraine in February 2022.
The Treasury’s Office of Foreign Assets Control (OFAC) stated that its initial analysis of the sanctions’ market impact shows they are achieving their intended goal of lowering Russian oil prices and, in turn, reducing funds available to support the war in Ukraine.
The sanctions require companies to wind down dealings with Rosneft and Lukoil by 21 November, with violations potentially leading to exclusion from the U.S. dollar-based financial system. However, details on how the Treasury will enforce the sanctions remain unclear, particularly as China and India continue to be the largest buyers of Russian crude.
OFAC added that several
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