US imposes sanctions on Russia’s top oil firms Rosneft and Lukoil over Ukraine war

The US Department of the Treasury on Wednesday local time imposed sanctions on Russias two largest oil companies Rosneft and Lukoil in an effort to pressure the Kremlin to end its war in UkraineThe sanctions aim to degrade Russias ability to raise revenue for its war machine and support its weakened economyTodays actions increase pressure on Russias energy sector and degrade the Kremlins ability to raise revenue for its war machine and support its weakened economy The United States will continue to advocate for a peaceful resolution to the war and a permanent peace depends entirely on Russias willingness to negotiate in good faith Treasury will continue to use its authorities in support of a peace process the US Treasurys statement readNow is the time to stop the killing and for an immediate ceasefire said Secretary of the Treasury Scott Bessent according to the statementGiven President Putins refusal to end this senseless war Treasury is sanctioning Russias two largest oil companies that fund the Kremlins war machine Treasury is prepared to take further action if necessary to support President Trumps effort to end yet another war We encourage our allies to join us in and adhere to these sanctions he addedRosneft and Lukoil are now designated resulting in the freezing of their assets in the US and restricting US persons from engaging in financial transactions with them All entities owned 5037 or more by Rosneft and Lukoil are blocked regardless of whether they are designated by OFACAccording to the statement Rosneft is a vertically integrated energy company specialising in the exploration extraction production refining transport and sale of petroleum natural gas and petroleum products Lukoil engages in the exploration production refining marketing and distribution of oil and gas in Russia and internationallyAdditionally OFAC is designating several Russiabased subsidiaries of Rosneft and Lukoil All entities owned 50 per cent or more directly or indirectly by Rosneft and Lukoil are blocked pursuant to EO 14024 even if not designated by OFAC the US Department of the Treasury saidAs a result of the US action all property and interests in property of the designated or blocked persons described above that are in the United States or in the possession or control of US persons are blocked and must be reported to OFACIn addition any entity that is owned directly or indirectly individually or in the aggregate by 50 per cent or more by one or more blocked persons is also blockedUnless authorised by a general or specific license issued by OFAC or exempt OFACs regulations generally prohibit all transactions by US persons or within or transiting the United States that involve any property or interests in property of blocked persons the statement mentionedThe statement mentioned that any violation of sanctions may result in the imposition of civil or criminal penalties on US and foreign personsOFAC may impose civil penalties for sanctions violations on a strict liability basis OFACs Economic Sanctions Enforcement Guidelines provide more information regarding OFACs enforcement of US economic sanctions In addition financial institutions and other persons may risk exposure to sanctions for engaging in certain transactions or activities with designated or otherwise blocked persons the statement mentionedIn addition foreign financial institutions that conduct or facilitate significant transactions or provide any service involving Russias militaryindustrial base including any persons blocked run the risk of being sanctioned by OFACFurthermore engaging in certain transactions involving the persons designated today may risk the imposition of secondary sanctions on participating foreign financial institutions OFAC can prohibit or impose strict conditions on opening or maintaining in the United States a correspondent account or a payablethrough account of a foreign financial institution that knowingly conducts or facilitates any significant transaction on behalf of a person who is designated pursuant to the relevant authority the statement mentionedThe power and integrity of OFAC sanctions derive not only from OFACs ability to designate and add persons to the SDN List but also from its willingness to remove persons from the SDN List consistent with the lawThe ultimate goal of sanctions is not to punish but to bring about a positive change in behaviour added the statementAny persons included on the SDN List pursuant to EO 14024 may be subject to additional export restrictions administered by the Department of Commerce Bureau of Industry and Security BISThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever