US President Donald Trump's decision to impose sanctions against Russia's largest oil companies - Rosneft and Lukoil - will not paralyze Vladimir Putin's war machine, but will help the EU get rid of Russian oil forever. This is reported by UNN with reference to Politico.
Details
According to Kimberly Donovan, a sanctions expert at the Atlantic Council think tank, this step is important because European countries and companies that continue to import energy will review their policy on Russian energy by November 21, when the sanctions come into force.
As the publication notes, for Lukoil, in particular, the sanctions "will cause significant damage," said one of the company's former executives. He agreed to speak on condition of anonymity.
According to him, the company will likely be forced to sell its stakes in foreign projects from Egypt to Iraq, which will affect 20% of its revenue.
At the same time, Lukoil still operates hundreds of gas stations across the EU, including about 200 in Belgium; operates giant oil refineries in Romania and Bulgaria; and owns a 45% stake in a fuel processing plant in the Netherlands. The company also supplies oil to Hungary and Slovakia, which are still 86-100% dependent on Moscow for their imports.
Romanian Secretary of State for Energy Cristian Bușoi told POLITICO that Lukoil will now be "obliged" to sell its Petrotel refinery in the south-central part of the country by the end of next month.
The Dutch government also considers the quick sale of Lukoil's stake in the Zeeland refinery in the southwest of the country to be the "most likely scenario," the publication says.
Recall
The United States Department of the Treasury officially imposed sanctions against leading Russian oil companies Rosneft, Lukoil, and their subsidiaries. The US called on Moscow to "immediately" agree to end the war against Ukraine.
Vladimir Putin stated that the new US sanctions are serious, but will not affect the Russian economy. He called them an attempt at pressure and an unfriendly act that does not strengthen Russian-American relations.
Donald Trump reacted to these words. He ironically noted that he was glad to hear about the dictator's "confidence," but said he would prefer to see how Russia copes with them.
UNN also reported that Hungarian Prime Minister Viktor Orbán is working on how to circumvent US sanctions against Russian oil companies Lukoil and Rosneft.