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Russia Criticizes New U.S. Sanctions on Rosneft and Lukoil, Warning of Higher Fuel Costs

Moscow frames last week’s Treasury designations as politically counterproductive.

Overview

  • Kirill Dmitriev said at the Future Investment Initiative forum in Saudi Arabia that sanctions on Russian oil will reduce global supply and lift fuel prices in the United States.
  • The U.S. Treasury last week added Rosneft, Lukoil and 34 subsidiaries to its latest sanctions package targeting Russia’s energy sector.
  • Foreign Ministry spokeswoman Maria Zakharova said the measures will not create problems for Russia, asserting the country has developed a sanctions ‘immunity.’
  • Zakharova argued the new restrictions send a counterproductive signal, including for prospects of a settlement related to the conflict in Ukraine.
  • The reports describe official warnings about market impacts without confirming immediate disruptions to oil supplies.