On October 23, the United States took one of its strongest steps yet against Russia by sanctioning its two biggest oil companies, Rosneft and Lukoil. The move, which has already impacted global oil trade, aims to cut off billions of dollars in revenue that Moscow uses to fund its war in Ukraine.
Washington Targets Russia’s Main Source of Money
In October, the US placed Rosneft and Lukoil on its Specially Designated Nationals (SDN) list. This freezes their assets under US jurisdiction and bans American companies from doing business with them. All existing contracts with them must be cancelled by November 21.
Rosneft and Lukoil account for almost half of Russia’s crude output. By hitting these firms directly, the US is targeting the heart of Russia’s economy.
Secondary Sanctions Push Foreign Buyers Away
The United States' goal is to squeeze Moscow's revenues by raising global oil prices. It hopes to do this not only through the direct
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