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The U.S. Treasury has stated that sanctions against Russian oil and gas giants Rosneft and Lukoil, imposed on Oct. 22, have already reduced Russia's oil revenue and are likely to lead to lower sales volumes in the long term, Reuters reports, citing the Treasury’s Office of Foreign Assets Control (OFAC).
OFAC claims that, based on its analysis of the initial market impact, the sanctions “are having their intended effect of dampening Russian revenues by lowering the price of Russian oil and therefore the country's ability to fund its war effort against Ukraine.” According to the agency, prices for several key Russian crude grades have fallen to multi-year lows, and a dozen major buyers in China and India have announced plans to suspend Russian oil purchases that were scheduled for December delivery.
According to LSEG Workspace data, Urals crude shipped from the Russian port of Novorossiysk traded at $45.35 per barrel on Nov. 12 — the lowest level since March 2023. By Nov. 17, the price had risen to $47.01 per barrel — but at the same time, Brent crude futures were priced at $62.71 on Nov. 12 and $64.03 on Nov. 17.
The restrictions imposed on Russia’s two largest oil producers are the first direct U.S. sanctions against Moscow since Donald Trump’s return to the White House. The sanctions affect 34 subsidiaries and apply to any organization where at least 50% of assets are owned by Rosneft or Lukoil.
Meanwhile, the sanctions against Lukoil have yet to take effect, as OFAC granted the company a grace period to divest from its foreign subsidiaries. For Lukoil’s Bulgarian assets, the deadline is Apr. 29, 2026; for all others, it is Dec. 13, 2025.
According to the Russian Ministry of Finance, oil and gas revenues for the federal budget totaled 7.498 trillion rubles ($92.6 billion) from January to October 2025, down 21.4% year on year. Russian authorities still forecast that oil and gas revenues for 2025 will exceed previous estimates, reaching 8.7 trillion rubles ($107.4 billion).