U.S. targets Russia’s oil giants with sweeping sanctions – Société Générale
|In its toughest move yet against Russian business, Washington sanctioned Lukoil and Rosneft, freezing assets and banning U.S. transactions. The sweeping measures, timed as oil prices dipped, signal a sharper U.S. strategy to pressure Moscow’s energy sector, Société Générale's FX analysts note.
Washington blocks Lukoil and Rosneft assets
"U.S. hits Russia’s top oil giants with sanctions: In a significant policy shift last week, U.S. President Donald Trump imposed sanctions on Russia’s two largest oil companies—Lukoil (privately held) and Rosneft (state-owned)—along with their subsidiaries. This marks the most forceful action Washington has taken against Russian businesses since the invasion of Ukraine."
"The implications of the sanctions include the blocking of all assets of the Russian oil giants, the prohibition of transactions between U.S companies and Lukoil and Rosneft, and secondary sanctions on institutions transacting with either oil company. Often described as the 'nuclear option,' these sanctions raised concerns about potential spikes in oil prices due to the companies' massive scale."
"However, the timing aligned with WTI crude prices dipping to $57/bbl in mid-October, providing an opportunity for President Trump to intensify economic pressure on Russia through a more assertive sanctions strategy targeting these oil giants."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.