In its toughest move yet against Russian business, Washington sanctioned Lukoil and Rosneft, freezing assets and banning U.S. transactions. The sweeping measures, timed as oil prices dipped, signal a sharper U.S. strategy to pressure Moscow’s energy sector, Société Générale’s FX analysts note.
Washington blocks Lukoil and Rosneft assets
“U.S. hits Russia’s top oil giants with sanctions: In a significant policy shift last week, U.S. President Donald Trump imposed sanctions on Russia’s two largest oil companies—Lukoil (privately held) and Rosneft (state-owned)—along with their subsidiaries. This marks the most forceful action Washington has taken against Russian businesses since the invasion of Ukraine.”
“The implications of the sanctions include the blocking of all assets of the Russian oil giants, the prohibition of transactions between U.S companies and Lukoil and Rosneft, and secondary sanctions on institutions transacting with either oil company. Often described as the ‘nuclear option,’ these sanctions raised concerns about potential spikes in oil prices due to the companies’ massive scale.”
“However, the timing aligned with WTI crude prices dipping to $57/bbl in mid-October, providing an opportunity for President Trump to intensify economic pressure on Russia through a more assertive sanctions strategy targeting these oil giants.”
