WASHINGTON - The U.S.Treasury Department’s Office of Foreign Assets Control (OFAC) on Wednesday imposed sanctions on two of Russia‘s largest oil companies, Rosneft and Lukoil, citing Russia’s lack of commitment to a peace process in Ukraine.
According to a press release, the sanctions aim to increase pressure on Russia’s energy sector and limit the Kremlin’s revenue stream for its war efforts. “Today’s action increases pressure on Russia’s energy sector and reduces the Kremlin’s ability to raise revenue for its war machine and prop up a weakened economy,” the statement read. “The United States will continue to push for a peaceful resolution to the war,and lasting peace depends entirely on Russia’s willingness to negotiate in good faith.”
The sanctions target Rosneft, which specializes in the exploration, production, refining, transportation, and sale of oil, natural gas, and petroleum products, and Lukoil, engaged in the exploration, production, refining, marketing, and distribution of oil and natural gas both in Russia and internationally. OFAC’s measures extend to all entities owned by 50 percent or more, directly or indirectly, by Rosneft and Lukoil, a full list of which is included in the official declaration.
The move follows similar sanctions imposed last week by Great Britain on Rosneft and lukoil, as well as on 44 tankers within Russia’s shadow fleet. Britain also sanctioned four oil terminals in China and the Indian company Najara Energy Limited,which imported 100 million barrels of Russian oil worth $5 billion (105 billion Czech crowns) last year.
Meanwhile, the Danish Presidency of the European Union announced Wednesday that the path is clear for the adoption of the 19th package of EU sanctions against Russia, with no member states voicing reservations. The EU package, a response to Russia’s invasion of Ukraine, includes energy and financial measures, including a gradual ban on imports of liquefied natural gas (LNG) from Russia, and is expected to be approved Thursday.
