<h3 data-start="178" data-end="252">US Slaps Sanctions on Lukoil and Rosneft, Russia&rsquo;s Oil Powerhouses</h3>
In a decisive geopolitical move, <a title="US" href="https://www.benefitnews24.com/international/trump-s-u-turn-on-putin-meet-stirs-confusion/21231" target="_blank" rel="noopener">US</a> President Donald Trump on Wednesday imposed sweeping sanctions on <a title="Russia" href="https://www.benefitnews24.com/defence/putin-oversees-russia-s-nuclear-drill/21236" target="_blank" rel="noopener">Russia&rsquo;s</a> two largest oil producers &mdash; Rosneft and Lukoil &mdash; accusing them of fuelling President Vladimir Putin&rsquo;s prolonged war in Ukraine. The measures, the first Ukraine-related sanctions of Trump&rsquo;s second term, mark a hardening of Washington&rsquo;s stance amid growing frustration over Moscow&rsquo;s refusal to agree to a ceasefire.
The sanctions coincide with the European Union&rsquo;s 19th package of restrictions against Russia, which includes a ban on liquefied natural gas imports, and follow Britain&rsquo;s recent decision to penalise both Rosneft and Lukoil. The coordinated Western approach is aimed at curbing the Kremlin&rsquo;s most vital source of revenue &mdash; its energy exports.
According to the US Treasury Department, Rosneft alone accounts for nearly half of Russia&rsquo;s total oil production, with total hydrocarbon output of 255.9 million tonnes in 2024. Lukoil, the country&rsquo;s second-largest producer, pumped 76.5 million tonnes last year, roughly 15% of Russia&rsquo;s total crude output. Combined, the two firms export over 3.1 million barrels of oil per day, a substantial portion of global supply.
ALSO READ: https://www.benefitnews24.com/international/ukrainian-drones-hit-major-russian-oil-refinery/19315
Treasury Secretary Scott Bessent described the move as a &ldquo;necessary response&rdquo; to Russia&rsquo;s defiance. &ldquo;Given President Putin&rsquo;s refusal to end this senseless war, Treasury is sanctioning Russia&rsquo;s two largest oil companies that fund the Kremlin&rsquo;s war machine,&rdquo; Bessent said.
The sanctions bar US entities from engaging in transactions with the two energy giants, freezing any American-held assets and cutting off access to US financial markets. Washington has also urged allies to adopt similar measures, aiming to choke Moscow&rsquo;s war financing while limiting global circumvention channels.
Markets reacted swiftly. Brent crude prices rose by more than $2 a barrel, climbing above $64, as traders assessed potential supply disruptions. Analysts warn that the restrictions could tighten global oil supplies, especially if European refiners or Asian intermediaries reduce purchases from Russian-linked entities.
Economically, the impact on Russia could be profound. Energy remains the backbone of its economy, generating nearly 40% of federal revenue. Striking Rosneft and Lukoil hits at the core of this system. However, experts caution that sanctions may also reverberate through European economies, already grappling with inflation and energy price volatility. Many EU states still depend on Russian crude and refined products indirectly through intermediaries, despite official bans.
In the Oval Office, Trump defended his decision, saying it was &ldquo;time&rdquo; for sanctions. &ldquo;I waited a long time,&rdquo; he remarked, adding that he hopes &ldquo;they won&rsquo;t be on for long &mdash; because the war will end.&rdquo; Yet, with Moscow unlikely to yield and oil markets bracing for turbulence, Washington&rsquo;s latest move signals a new phase in the economic confrontation between the West and Russia.

Trump imposes sanctions on Lukoil and Rosneft, shaking global oil markets

US Targets Russia’s Oil Giants

Trump imposes sanctions on Lukoil and Rosneft, shaking global oil markets

October 23, 2025 | 15:06 IST