The United States has imposed sanctions on major Russian oil companies and called on Russia to immediately agree to a cease-fire in Ukraine.
“Given President Putin’s refusal to end this senseless war, Treasury is sanctioning Russia’s two largest oil companies that fund the Kremlin’s war machine. Treasury is prepared to take further action if necessary to support President Trump’s effort to end yet another war. We encourage our allies to join us in and adhere to these sanctions,” said Secretary of he U.S. Department of the Treasury Scott Bessent.
The US sanctions are directed against the two largest Russian oil companies, Open Joint Stock Company Rosneft Oil Company (Rosneft) and Lukoil OAO (Lukoil), as well as their subsidiaries.
Rosneft is the leader of the Russian oil industry. Its blocking stake belongs to JSC Rosneftegaz, a state-owned company. Rosneft operates in all major oil and gas provinces of Russia, including Western and Eastern Siberia, the Volga region, the Urals, the Far East, Timan-Pechora, and the Krasnodar Territory. It also operates in offshore seas of the Russian Federation. By the end of 2024, Rosneft had paid more than 6.1 trillion rubles in taxes and other payments to the country’s budget. This is the maximum amount not only for the oil company but also for the entire Russian market.
Rosneft is the largest oil company in Russia. By the end of 2024, its hydrocarbon production totaled 255.9 million tons of oil equivalent, including 184 million tons of liquid hydrocarbons. Rosneft also produces the most gas in Russia, with 87.5 billion cubic meters by the end of the year.
Lukoil accounts for around 2% of the world’s oil production, with its oil and gas condensate output totalling 80.4 million tonnes in 2016, and gas production reaching 34.3 bcm, of which 18.1 bcm was produced in Russia and 16.2 bcm outside the country.
