The U.S. Treasury says sanctions on Rosneft and Lukoil, introduced on October 22, have already reduced revenue from Russian oil sales and are likely to shrink volumes over time, Reuters reports, citing the Treasury’s Office of Foreign Assets Control (OFAC).
OFAC says its early analysis shows the measures are having the intended effect by pushing down prices for Russian crude and, in turn, limiting the country’s ability to finance its war in Ukraine. Prices for several key Russian grades have fallen to multi-year lows, and about a dozen major buyers in China and India have said they plan to suspend purchases of Russian oil for December deliveries.
According to LSEG Workspace, Urals crude loaded at Novorossiysk traded at $45.35 a barrel on November 12 - the lowest since March 2023 - before rising to $47.01 on November 17. Brent futures were at $62.71 on November 12 and $64.03 on November 17.
The restrictions against Russia’s two largest oil producers are the first direct sanctions Washington has imposed on Moscow since President Donald Trump took office. The measures also cover 34 subsidiaries and extend to any entity in which Rosneft and Lukoil hold at least a 50% stake.
Sanctions on Lukoil, however, have not yet taken effect: OFAC granted the company time to divest foreign subsidiaries - until April 29, 2026 for its Bulgarian assets and until December 13, 2025 for all others.
Russia’s Finance Ministry says oil and gas revenues from January through October totaled 7.498 trillion rubles, down 21.4% from the same period in 2024.
According to the Russian government’s forecast, federal oil and gas revenues in 2025 will exceed earlier targets and reach 8.7 trillion rubles.
