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This week America has New sanctions imposed on Rosneft and LukoilRussia’s two largest petroleum producing companies.
Efforts to negotiate an end to Vladimir Putin’s war on Ukraine hit a deadlock trump Administration took this step to increase pressure Russiaenergy sector” and “undermining the Kremlin’s ability Increase revenue for your war machine and support its weak economy”.
So how much impact can this move have and what will be its implications countries that depend on russia to supply them Oil,
Who buys oil from Russia?
China, India And turkey are the largest recipients of Russian oil which used to go European UnionThe massive change in crude oil flows was caused by the EU’s decision to boycott most Russian offshore oil from January 2023. Europe For Asia.
Since then, China has been the No. 1 consumer of Russian energy, buying about $219.5bn (£164bn) worth of Russian oil, gas and coal, followed by India ($133.4bn/£100bn) and Turkey ($90.3bn/£67.7bn).
According to Bloomberg, up to 20 percent of China’s crude oil imports come from Russia. reportsData analytics firm Kepler suggests that a quarter of this comes from Rosneft And LUKOIL.
Last year, China reportedly bought 100 million tons of Russian crude, and last month alone it imported about 2 million barrels per day.
India, another country that makes significant purchases of Russian oil, imported relatively little before the invasion of Ukraine. It now imports about 1.6 million barrels a day.
Türkiye is also a relatively big customer, while other buyers include the EU, Myanmar and Azerbaijan, but it is the deals with India and China that have the greatest financial impact.
Analysis by the Center for Research on Energy and Clean Air (CREA) showed that the EU has been buying large amounts of LNG and pipeline gas, while Turkey has bought more oil products.
CREA analysis found that China and India bought 85 percent of all Russian crude exports in September.
Will Britain be affected?
A ban on the import, acquisition and supply of Russian oil and oil products was imposed by the UK in December 2022. However, the Treasury committee heard from experts in 2024 that Russian oil would still be ending up in the UK despite sanctions, due to a loophole.
As long as Russian oil is refined in another country, such as India, it can avoid sanctions.
Richard Bronze, head of geopolitics at Energy Aspects, told MPs he estimates that refined Russian oil accounts for “less than 5 per cent” of Britain’s oil imports.
Britain joined the US in imposing sanctions on Rosneft and Lukoil earlier this week.
What financial impact will the sanctions have?
The financial crisis may not be immediate given how much Russia would suffer as a result of the new measures.
The sanctions state that trade relations with both Russian companies must be ended or halted by November 21, giving India and China time to make alternative arrangements – and there is certainly a possibility that Russia will re-engage in talks during that time to lift the sanctions.
However, CREA Analysis It revealed Russia’s total revenue from fossil fuels in September was €546m (£474m) a day. The report also said that, if the $47.60 per barrel price cap had been fully implemented, revenues would have been €1.53bn (£1.15bn) lower in September 2025 alone.
The most immediate impact has been changes in the price of oil. Markets generally don’t like uncertainty, and the sanctions themselves were unexpected, so a quick bounce is not unusual in such circumstances.
“Oil markets have rallied on news that the Kremlin has failed to make progress on peace in Ukraine and that the US is imposing sanctions on Russia’s major oil producers,” said Steve Clayton, head of equity funds at Hargreaves Lansdown.
“Brent crude rose 4 per cent to nearly $65 a barrel on the news, marking a dramatic recovery from recent weakness in crude oil markets. The US’s new stance is in sharp contrast to recent messaging from the White House and has taken markets by surprise.
“The effectiveness of the sanctions has not yet been proven, but President Trump has said that Indian Prime Minister Narendra Modi has assured him that India will stop purchasing Russian oil.”
For some context, Brent crude rose to nearly $77 at the beginning of the summer, when such fears Iran may be completely shut down Strait of Hormuz.
How big are Rosneft and Lukoil?
The two organizations together represent about $105 billion (£80 billion) in market capitalization – an accepted measure of a company’s “worth” – which is divided almost evenly, with Rosneft’s share being slightly larger. For comparison, London-listed energy firm BP is worth about £66 billion.
Russia exports about 4 million barrels of oil per day, and Rosneft and Lukoil contribute about half of this figure. Rosneft alone is responsible for about 6 percent of global oil production.