On October 22, 2025, President Trump announced a new round of sanctions targeting Russia’s two largest oil companies, Lukoil and Rosneft. The sanctions, imposed by the U.S. Treasury Department, are aimed at cutting off critical revenue sources for the Kremlin by banning American entities from doing business with these firms and threatening secondary sanctions on foreign financial institutions. As a result, Lukoil announced it would begin selling off its international assets across 11 countries.
The sanctions prohibit U.S. companies from engaging with Lukoil, Rosneft, or their subsidiaries, and include penalties for foreign banks doing business with them. These secondary sanctions are significant because they restrict access to the U.S. financial system, making it risky for international actors to maintain ties with the targeted companies. The sanctions are designed to hinder Russia’s ability to fund its war efforts and weaken its broader economy.
In response, Lukoil released a statement on October 27 stating its intent to sell its international holdings due to the “introduction of restrictive measures.” The company is already reviewing bids from potential foreign buyers. The sales are being conducted under an OFAC wind-down license, which provides temporary authorization to manage operations and divestments. Lukoil also indicated it may request an extension of this license to ensure smooth transactions.
Lukoil’s international assets include oil refineries in Bulgaria and Romania, a 45% stake in a Dutch refinery, oil and gas operations in the Middle East and Africa, and roughly 5,000 gas stations worldwide. Among the first confirmed divestments is the sale of over 600 gas stations in Turkey, originally purchased in 2008 for $500 million. A former Lukoil executive told Politico that the company could lose 30% of its total revenue and may not survive the financial impact.
Governments in Bulgaria and Romania are working to expedite the sale of local Lukoil assets before the sanctions fully take effect on November 21. The Bulgarian government is particularly focused on ensuring continued operations at the Burgas refinery, which is vital to regional energy supply. Any disruption at the facility could trigger an energy crisis in Southeastern Europe.
While Lukoil is facing severe consequences, analysts believe Rosneft may fare better, as it has fewer foreign holdings and a stronger domestic market position. Oil markets responded to the sanctions with a third consecutive day of price declines. Investors are still assessing whether the sanctions will reduce Russian oil exports or simply shift them toward non-Western buyers.
These sanctions reflect a strategic effort to curtail Russia’s wartime economy by targeting its most valuable assets—energy exports. The measures also affirm the use of financial leverage as a tool to hold aggressive regimes accountable and defend international security and stability.
