US sanctions Rosneft and Lukoil, warning buyers of penalties

The United States on Thursday imposed sanctions on Russia’s two largest oil producers, Rosneft and Lukoil, and warned that secondary penalties could be applied to foreign firms that continue to buy from them, officials said. The measures, announced by the Treasury Department, come as Washington aims to pressure the Kremlin to end its war in Ukraine and have prompted immediate corporate and market reactions, including plans by Lukoil to divest overseas assets and a sharp pause in Russian crude purchases by major Indian refiners.

The sanctions freeze designated assets and bar U.S. entities from dealing with the two companies, while guidance from the Treasury’s Office of Foreign Assets Control allows a standard 30‑day wind‑down period for existing transactions. Lukoil said it would sell its international business under an OFAC wind‑down license and was reviewing bids; the company also later said it had accepted an offer from commodity trader Gunvor for its international subsidiary, subject to U.S. approvals. Lukoil said it may seek extensions of OFAC licenses to preserve operations during the transition.

U.S. officials described the step as calibrated to reduce Kremlin oil revenue...