Overview
- Lukoil said it will divest its international portfolio and confirmed that a tender process to sell foreign assets has already begun.
- The new U.S. sanctions target Lukoil and Rosneft, freeze their assets in the United States, and give American companies one month to halt business or face secondary penalties on banks.
- Together, Rosneft and Lukoil account for 55% of Russia’s oil production, raising the potential impact on Moscow’s energy revenues.
- China has suspended purchases of Russian crude following President Trump’s decision, and reports say India may take a similar step as Beijing weighs the risk of U.S. retaliation.
- Market commentary cited by Reuters anticipates higher oil prices as buyers seek alternative supplies and expects Russia’s budget revenues to come under strain, despite Kremlin claims of limited impact.