❓WHAT HAPPENED: The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) imposed new sanctions targeting Russia’s energy sector, specifically its two largest oil companies, Rosneft and Lukoil.
👤WHO WAS INVOLVED: The U.S. Treasury Department, Rosneft Oil Company, Lukoil OAO, and their subsidiaries.
📍WHEN & WHERE: Announced today, impacting entities operating in Russia’s energy sector and U.S. financial systems.
💬KEY QUOTE: “Now is the time to stop the killing and for an immediate ceasefire,” said Secretary of the Treasury Scott Bessent.
🎯IMPACT: These sanctions block property and restrict transactions involving the targeted entities, aiming to hinder Russia’s ability to fund its military operations.
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has announced new sanctions targeting Russia’s energy sector, citing “Russia’s lack of serious commitment to a peace process to end the war in Ukraine.” The sanctions specifically target Russia’s two largest oil companies, Rosneft Oil Company and Lukoil OAO, along with their subsidiaries.
Rosneft and Lukoil are major players in the exploration, production, refining, and sale of oil and gas. The sanctions, enacted under Executive Order 14024, aim to block these companies’ access to U.S. financial systems and restrict their ability to raise revenue for Russia’s war efforts in Ukraine.
“Now is the time to stop the killing and for an immediate ceasefire,” stated Secretary of the Treasury Scott Bessent. He added, “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.”
The sanctions also extend to subsidiaries of Rosneft and Lukoil, including entities involved in oil and gas production, refining, and exploration. All property and interests in property of these companies under U.S. jurisdiction are blocked, and U.S. persons are prohibited from engaging in transactions with them unless specifically authorized.
OFAC emphasized that foreign financial institutions facilitating significant transactions with these entities risk secondary sanctions. The move is part of the broader effort to pressure Russia into negotiating a peaceful resolution to the conflict in Ukraine, which has stalled since Trump staged a major in-person meeting with Russian President Vladimir Putin in Alaska in August.
Russia may be stalling because it believes it is close to a significant military breakthrough in a war that has been stalemated for months, with reports indicating that Ukraine may be on the verge of retreating from the lynchpin fortress city of Pokrovsk, in the hotly contested Donbass (Donbas) region.
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