The sanctions freeze the assets and financial interests of Rosneft, Lukoil, and their majority-owned subsidiaries. They are designed to cut off key revenue streams that finance Russia’s war effort.
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has imposed these additional measures on Russia’s two largest oil companies — Rosneft Oil Company (Rosneft) and Lukoil OAO (Lukoil). Rosneft is a vertically integrated energy firm involved in the exploration, extraction, production, refining, transportation, and sale of petroleum, natural gas, and related products. Lukoil operates in the exploration, production, refining, marketing, and distribution of oil and gas both within Russia and internationally.
By tightening restrictions on Russia’s energy sector, the sanctions seek to weaken the Kremlin’s ability to generate revenue for its military operations and to support its ailing economy.
