US Imposes Sanctions on Russian Oil Giants Rosneft and Lukoil Impacting Global Oil Trade

The U.S. Treasury Department, under President Trump, recently imposed sanctions on two major Russian oil companies, Rosneft and Lukoil, citing Russia's insufficient commitment to peace in the Ukraine conflict. These sanctions, which freeze assets and include secondary sanctions on foreign entities dealing with these companies, aim to cut off significant revenue streams fueling Russia's war efforts. Russia's oil sector is crucial to its economy, representing 20-30% of GDP, making these sanctions a strategic pressure point, especially as Russia is a major oil supplier to countries like India. India, heavily reliant on discounted Russian crude oil, faces a dilemma as these sanctions threaten its energy security and could disrupt supplies, with Indian refiners closely linked to these Russian firms. While Putin condemned the sanctions as "unfriendly," President Trump and the U.S. see these measures as necessary to pressure Russia economically and push for diplomatic resolution. Analysts note the complexity of sanctions enforcement and the risk of circumvention, emphasizing the need for a comprehensive international approach to maximize impact.