US Treasury: Sanctions against Rosneft and Lukoil are already reducing Russia’s oil revenues
18.11.2025 - 13:25
The restrictions, imposed in October, have lowered the market value of Russian oil and could reduce its sales in the long term.
The Office of Foreign Assets Control (OFAC) published an analysis, Reuters reports.
According to the document, the sanctions “achieve the desired effect of reducing Russia’s revenues by reducing the price of Russian oil and, consequently, the country’s ability to finance its military efforts against Ukraine.”
The restrictions are among the toughest since Russia’s full-scale invasion of Ukraine in 2022 and the first direct sanctions against Russia’s energy sector by the Trump administration. The companies were given until November 21 to end their cooperation with Rosneft and Lukoil or face being cut off from the dollar-denominated financial system.
OFAC also recorded a drop in prices for key Russian oil grades. Urals, loaded in Novorossiysk, on November 12 cost $45.35 per barrel — the lowest since March 2023. This happened against the backdrop of reduced purchases from India and China: almost a dozen large oil refiners of these countries announced their intention to suspend purchases in December.
On the Brent market, the price was $62.71 on November 12, and as of Monday, November 17, it was $64.03. Urals rose slightly to $47.01 after the resumption of shipments at the port of Novorossiysk, which were interrupted by a Ukrainian attack with drones and missiles.
The US Treasury Department said that the restrictions are already “forcing Putin’s military machine to starve.”
Earlier, USM reported that Lukoil lost about $10 billion in capitalization after US sanctions.
Recall that on October 22, the US imposed sanctions against the largest Russian oil companies Rosneft and Lukoil. The sanctions also affect about 50 of their subsidiaries.
