Skip to content

Rosneft and Lukoil: The Two Pillars of Putin’s Oil Regime

Rosneft and Lukoil are no ordinary companies. They are Russia’s two largest oil companies, together accounting for the majority of Russian hydrocarbon exports. Rosneft, a state-controlled company, is led by Igor Sechin, one of Putin’s most influential confidants. Lukoil, though technically private, remains closely tied to the regime through its networks of influence, government contracts, and dependence on state-controlled export infrastructure. Sanctioning these two entities directly undermines Putin’s ability to finance his war through oil revenues.

U.S. sanctions operate on several levels: they prohibit U.S. companies and citizens from doing business with designated entities, they block access to dollar-denominated financial markets, and they create an international ripple effect—because any third-party company at risk of violating U.S. rules will, as a precaution, avoid any contact with sanctioned entities. This is known as extraterritorial sanctions, and it is the primary lever of U.S. economic power. When this lever is activated, it bites. And when it is suspended—even temporarily—Moscow pockets revenue it should never have received.

Moscow’s $2 Billion: The Real Cost of the Waiver

The figure cited by S&P Globalmore than $2 billion in additional revenue for Russia during the 97-day waiver—is not an abstraction. It is a reality translated into artillery shells, Shahed drones, and recruited and equipped soldiers. While Ukraine’s allies were debating aid packages down to the last detail, the U.S. exemption gave Putin an unexpected windfall of several billion. This asymmetry is one of the reasons the war is dragging on—and the reason Ukrainians watch every decision made in Washington regarding sanctions with feverish vigilance.

Commissioner Vlasyuk was the first to publicly confirm that the sanctions were back in effect on June 26, 2026—nine days after their supposed reinstatement. This delay also illustrates something important: the lack of transparency in U.S. policy. A democracy whose major foreign policy decisions are neither announced nor confirmed for more than a week poses a problem of governance—and of trust among its allies.


Two billion dollars to fund the war in Ukraine, allocated not out of political choice but out of fear of rising gas prices. That’s the equation no one in Washington wanted to voice aloud. But there it is, in the columns of S&P Global, and it speaks volumes about our collective priorities.

This content was created with the help of AI.

facebook icon twitter icon linkedin icon
Copied!

Comments

0 0 votes
Article Rating
Subscribe
Notify of
guest
0 Comments
Newest
Oldest Most Voted
More Content