The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced a new round of sanctions on Wednesday, targeting Russia’s two largest oil companies, Rosneft and Lukoil, as part of efforts to pressure Moscow to end its ongoing war in Ukraine.

According to the Treasury, the latest measures aim to further weaken Russia’s energy sector and restrict the Kremlin’s ability to generate revenue for its military operations.

“Now is the time to stop the killing and for an immediate ceasefire,” said U.S. Treasury Secretary Scott Bessent. “Given President Putin’s refusal to end this senseless war, Treasury is sanctioning Russia’s two largest oil companies that fund the Kremlin’s war machine. Treasury is prepared to take further action if necessary to support President Trump’s effort to end yet another war. We encourage our allies to join us in and adhere to these sanctions.”

The new designations place Rosneft Oil Company and Lukoil OAO under sanctions pursuant to Executive Order 14024 for operating in the energy sector of the Russian Federation. Both companies are among the largest players in Russia’s oil and gas industry, involved in exploration, production, refining, and global distribution of petroleum products.

Subsidiaries Also Targeted

OFAC also sanctioned dozens of subsidiaries of Rosneft and Lukoil operating across Russia, including refineries and energy exploration firms. The full list, provided in an annex to the Treasury’s statement, includes entities such as Lukoil Perm, Lukoil Kaliningradmorneft, Bashneft Dobycha, CJSC Vankorneft, and RN Tuapse Oil Refinery.

Under U.S. law, all property and interests in property of designated entities located in the United States or controlled by U.S. persons are now blocked. Entities owned 50 percent or more by Rosneft or Lukoil are automatically subject to these restrictions, even if not explicitly named by OFAC.

The Treasury emphasized that the sanctions prohibit U.S. individuals and companies from engaging in transactions with the designated firms unless specifically authorized. Violations may result in civil or criminal penalties.

Warning to Foreign Financial Institutions

The Treasury also warned that foreign financial institutions facilitating significant transactions or providing services to entities tied to Russia’s military-industrial complex could face secondary sanctions. OFAC’s updated advisory urges banks and firms abroad to exercise caution when dealing with Russian energy or defense-related entities.

In its statement, OFAC reiterated that the goal of sanctions is “not to punish, but to bring about a positive change in behavior.” The department noted that individuals and companies seeking removal from the Specially Designated Nationals (SDN) List may submit petitions under established legal procedures.

The new sanctions represent one of the Biden administration’s most sweeping actions since the onset of the Russia-Ukraine conflict, reflecting ongoing U.S. efforts to isolate Moscow economically while pressing for a peaceful resolution to the war. (ILKHA)