On Wednesday, October 22, 2025, the U.S. Department of the Treasury announced that the Office of Foreign Assets Control (OFAC) had imposed sanctions on Russia’s two largest oil companies, PAO Rosneft Oil Company and PAO Lukoil Oil Company, along with 34 of their subsidiaries, citing Moscow’s unwillingness to begin a peace process in the war with Ukraine.
The measures are intended to increase pressure on Russia’s energy sector and limit the Kremlin’s ability to generate revenue to fund its war machine and support its weakened economy. The United States will continue to advocate for a peaceful resolution to the war, emphasizing that a lasting peace depends solely on Russia’s willingness to negotiate in good faith. The Department of the Treasury will continue to use its authorities to support the peace process.
“Now is the time to stop the killing and for an immediate ceasefire,” said Secretary of the Treasury 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.”
PAO Rosneft is the largest oil company in Russia in terms of crude oil production and oil-related revenues, accounting for approximately 31% of total national output, while PAO Lukoil ranks second, producing about 15%. Rosneft is engaged in the exploration, extraction, production, refining, transportation, and sale of crude oil, natural gas, and petroleum products. Lukoil, in turn, conducts exploration, production, refining, marketing, and distribution of oil and gas both in Russia and internationally.
Both companies have been sanctioned under Executive Order 14024 for operating in the energy sector of the Russian Federation’s economy.
In addition, sanctions have been imposed on 34 subsidiaries in which either company holds at least a 50% ownership stake, including:
- Lukoil Perm
- Lukoil Aik
- Lukoil Kaliningradmorneft
- Lukoil West Siberia
- Russian Innovation Fuel and Energy Company
- Uraloil
- Kuybyshev Refinery JSC (Aktsionernoye Obshchestvo Kuybyshevsky Neftepererabatyvayushchiy Zavod)
- Sibneftegaz
- Bashneft Dobycha
- Vankorneft
- East Siberian Oil and Gas Company
- Grozneftegaz
- Rospan International
- Ryazan Oil
- Samaraneftegaz
- Kharampurneftegaz
- Bashneft-Polus
- Kynsko-Chaselskoye Neftegaz
- Purneftegaz
- Tuapse Oil
- Krasnodarneftegaz
- Achinsk Refinery
- Novokuibyshevsk Refinery
- Orenburgneft
- Samotlorneftegaz
- Syzran Refinery
- Verkhnechonskneftegaz
- Saratov Refinery
- Public Joint Stock Company Udmurtneft named after V.I. Kudinov
- Komsomolsk Refinery
- Nyaganneftegaz
- Uvatneftegaz
- Yuganskneftegaz
- Taas-Yuryakh Neftegazodobycha
As a result of the sanctions, all property and interests in property of the above-mentioned companies and related persons that are located in the United States or in the possession or control of U.S. persons have been blocked and must be reported to OFAC. Furthermore, any entities owned, directly or indirectly, individually or in aggregate, by 50% or more by one or more sanctioned persons or entities are likewise blocked. Unless authorized under a general or specific license issued by OFAC, or otherwise exempt, U.S. persons are generally prohibited from engaging in any transactions within, to, or transiting through the United States that involve any property or interests in property of blocked persons or entities.
Violations of U.S. sanctions may result in civil or criminal penalties for both U.S. persons and foreign nationals. OFAC may impose civil penalties on a strict liability basis for sanctions violations. In addition, financial institutions and other entities may face penalties for engaging in certain transactions or dealings with designated or otherwise blocked entities.
Moreover, foreign financial institutions that conduct or facilitate significant transactions or provide any services related to the Russian military-industrial base, including dealings with blocked entities, risk being subjected to OFAC sanctions.
Engaging in certain transactions with designated entities may also expose foreign financial institutions to the risk of secondary sanctions, such as severe restrictions on the opening or maintenance of correspondent or payable-through accounts in the United States.
Press Release: https://t.co/IR9OdRwpiC
— Treasury Department (@USTreasury) October 22, 2025
