I tried to dig up all my Russian oil company articles at Breitbart but it was too hard to track them all down.
Due to Russia not cooperating (what a shock), President Donald Trump announced that the Treasury Department placed sanctions on Russia’s two largest oil companies: Open Joint Stock Company Rosneft Oil Company (Rosneft) and Lukoil OAO (Lukoil).
“Now is the time to stop the killing and for an immediate ceasefire. 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,” Secretary Scott Bessent wrote on X. “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.”
The list also includes numerous Rosneft and Lukoil subsidies.
From the Treasury (emphasis mine):
As a result of today’s 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 U.S. persons are blocked and must be reported to OFAC [Office of Foreign Assets Control]. In addition, any entities that are owned, directly or indirectly, individually or in the aggregate, 50 percent or more by one or more blocked persons are also blocked. Unless authorized by a general or specific license issued by OFAC, or exempt, OFAC’s regulations generally prohibit all transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of blocked persons.Violations of U.S. sanctions may result in the imposition of civil or criminal penalties on U.S. and foreign persons. OFAC may impose civil penalties for sanctions violations on a strict liability basis. OFAC’s Economic Sanctions Enforcement Guidelines provide more information regarding OFAC’s enforcement of U.S. 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.
If I recall correctly…major oil companies had that permission or exemptions from previous sanctions, allowing them to continue working with those oil companies.
I believe many, though, have pulled out of Russia.
ExxonMobil and others are still trying to recover billions of dollars in losses from sanctions stemming from 2014 and 2022:
Exxon said the exit from Russia meant it had lost access to 150 million barrels of proven reserves of oil equivalent.—Other major oil companies have also written down assets in Russia. In February 2022, BP took a hit of up to $25 billion for exiting its near-20% stake in Rosneft, which accounted for around half of BP’s oil and gas reserves and a third of its production.Shell took a $3.4 billion write down of its stakes in the Sakhalin 2 LNG plant and Siberian oil fields.
Unfortunately, these sanctions can pose significant challenges for American oil companies. The Arctic is rich with natural resources.
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