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 measures specifically focus on Rosneft Oil Company and Lukoil OAO, two of Russia’s largest oil firms, along with their subsidiaries.
The sanctions, enacted under Executive Order 14024, block property and restrict transactions involving the targeted entities, aiming to hinder Russia’s ability to fund its military operations in Ukraine. Secretary of the Treasury Scott Bessent stated, “Now is the time to stop the killing and for an immediate ceasefire,” emphasizing the U.S. commitment to pressuring Russia into negotiations.
The actions extend to subsidiaries involved in oil and gas production, refining, and exploration. Foreign financial institutions facilitating significant transactions with these entities risk secondary sanctions. The move follows stalled efforts to resolve the conflict, which has seen prolonged fighting in regions like Donbass.
OFAC highlighted that U.S. persons are prohibited from engaging in transactions with the sanctioned companies unless authorized. The measures underscore ongoing pressure on Russia amid its war in Ukraine.
U.S. Imposes New Sanctions on Russia’s Energy Sector Over War in Ukraine
