The United States imposes sanctions against "Rosneft" and "Lukoil" due to the war in Ukraine

The United States imposes sanctions against "Rosneft" and "Lukoil" due to the war in Ukraine

Today, the Office of Foreign Assets Control (OFAC) of the U.S. Department of the Treasury is imposing new sanctions due to Russia’s lack of serious commitment to the peace process aimed at ending the war in Ukraine.

Today’s actions increase pressure on the Russian energy sector and reduce the Kremlin’s ability to generate revenue for its military machine and sustain its weakened economy.

The United States will continue to advocate for a peaceful resolution of the conflict, and achieving a durable peace is entirely contingent on Russia’s willingness to engage in good-faith negotiations. The U.S. Department of the Treasury will continue to use its authorities to support the peace process.

"Now is the time to stop the killings and immediately declare a ceasefire," said Secretary of the Treasury Scott Bessent. "Given President Putin’s refusal to end this senseless war, the Department of the Treasury is imposing sanctions against the two largest Russian oil companies that finance the Kremlin’s military machine. The Treasury is prepared to take further action if necessary to support President Trump’s efforts to end another war. We urge our allies to join us and adhere to these sanctions."

Today’s measures target the two largest Russian oil companies—open joint-stock company "Oil Company "Rosneft" (OJSC "Rosneft") and OJSC "Lukoil" (LUKOIL), which are now included in the sanctions list.

"Rosneft" is a vertically integrated energy company specializing in the exploration, extraction, production, refining, transportation, and sale of oil, natural gas, and petroleum products. "Lukoil" is engaged in the exploration, extraction, refining, marketing, and distribution of oil and gas in Russia and abroad.

The companies "Rosneft" and "Lukoil" are included in the sanctions list pursuant to Executive Order 14024 for operating or having operated in the energy sector of the Russian Federation economy.

In addition, OFAC is adding a number of Russian subsidiaries of "Rosneft" and "Lukoil" to the sanctions list, as listed in Annex 1.

All companies in which "Rosneft" and "Lukoil" own, directly or indirectly, a 50% or greater interest are blocked under Executive Order 14024, even if they are not listed on the OFAC sanctions list.