US sanctions against Rosneft and Lukoil come into effect

It is expected that a significant reduction in the Kremlin’s oil revenues will be recorded already in December of this year.

This was reported by the Presidential Commissioner for Sanctions Policy of Ukraine Vladyslav Vlasyuk.

According to him, on November 21, US sanctions against Rosneft and Lukoil will come into force (with some exceptions related to small transactions and preparation for the sale).

“We are already seeing good results, which are supported by the sanctions of the UK and the EU. Rosneft and Lukoil account for 40% of Russian oil exports and up to 80% of Russian oil exports to India and China (if blends are also taken into account). At the same time, five large Indian refineries did not place purchase orders in December. Millions of barrels of oil are stuck in tankers that are not being accepted for unloading, and the volume of exports has decreased by 20% compared to October,” said Vladyslav Vlasyuk, the commissioner for sanctions policy.

He also emphasized that a significant reduction in the aggressor country’s oil revenues is expected as early as December this year.

As Bloomberg writes, according to the analytical company Kpler, about 48 million barrels of Rosneft and Lukoil oil — mainly Urals and ESPO grades — are currently en route or in the process of being loaded. This includes about 50 tankers headed to China and India, as well as other vessels without a specified destination or those moving to smaller ports from the Baltic to the South China Sea, as intermediaries try to distance themselves from such trade.

USM previously reported that Lukoil lost about $10 billion in capitalization after US sanctions.

As a reminder, on October 22, the US imposed sanctions against Russia’s largest oil companies, Rosneft and Lukoil. The sanctions also affect about 50 of their subsidiaries.