US President Donald Trump recently announced sanctions against leading Russian oil companies, including Rosneft and Lukoil. This move, according to analysts, will not lead to an immediate paralysis of the Kremlin’s military machine, but it will significantly complicate Russia’s oil exports to European Union countries and may impact the energy independence of the bloc.
This is reported by Business • Media
Restrictions on Russian Oil Giants and Impact on the EU
Rosneft and Lukoil account for two-thirds of the 4.4 million barrels of oil that Russia supplies to external markets daily. The new sanctions, which include a ban on transactions in dollars, could potentially remove up to half of this volume from the market. However, experts note that due to attempts to circumvent the bans, most oil buyers may return to purchasing as soon as they find ways to bypass the sanctions.
More importantly, how these restrictions will affect European states is a key concern. The US Department of the Treasury has warned that sanctions could be applied to any companies or individuals that continue to cooperate with Lukoil or Rosneft. This effectively blocks payments through European banks, jeopardizing energy security, particularly for Hungary and Slovakia. If the sanctions come into full effect, the import of Russian oil by these countries could cease.
Hungary’s Response and US Support
Hungarian Prime Minister Viktor Orban stated that his country is seeking ways to circumvent the new American sanctions. Next week, he plans to meet with President Trump to discuss possible options for cooperation under the new restrictions.
“The United States expects countries like Hungary, Turkey, and Slovakia to develop a plan to reduce their dependence on Russian energy sources and implement it. The US is ready to assist Hungary in the process of freeing itself from dependence on Russian oil and gas,” emphasized US Ambassador to NATO Matthew Whitaker.
Meanwhile, following the announcement of the new sanctions last week, the capitalization of Rosneft and Lukoil decreased by 424 billion rubles in two days, equivalent to $5.2 billion.
According to estimates by Ukrainian experts, as a result of US sanctions, Russia could lose more than half of its oil export volumes, which would account for about half of Russia’s oil dollar revenues—approximately $100 billion a year, or at least $5 billion per month.