Oil prices rise as US and EU tighten sanctions on Russian energy

23 October 2025

Oil prices rose sharply after the United States announced new sanctions against Russian oil giants Rosneft and Lukoil, marking the first such measures since Donald Trump returned to the White House. The move, aimed at cutting off vital revenue to Moscow, comes amid renewed Western efforts to pressure Russia over its ongoing war in Ukraine.

Targeting Russia’s energy backbone

The price of US crude, West Texas Intermediate (WTI), climbed by around 2.5 per cent to nearly 60 USD per barrel, while Brent crude remained at about 63 USD per barrel. According to the US treasury department, the sanctions target Rosneft, Lukoil and several subsidiaries at least 50 per cent owned by the two firms. The measures are intended to “reduce the Kremlin’s revenue for its war machine” and “weaken” Russia’s already strained economy, the department said in a statement.

Rosneft, Russia’s largest state-owned oil company, and Lukoil, one of its biggest private producers, together generate more than 200 billion USD in annual revenue. Both play a critical role in sustaining Russia’s economy and military operations, making them key targets for Western governments.

Coordinated Western response

The United States’ action coincides with a new wave of sanctions agreed by the European Union, the bloc’s 19th package since the start of the war. The EU measures include a complete ban on Russian liquefied natural gas (LNG) imports and tougher restrictions on the “ghost fleet” of oil tankers used by Moscow to evade sanctions.

According to the Danish presidency, which currently chairs the Council of the EU, the latest package reflects Europe’s determination to close loopholes in existing measures and curb Russia’s capacity to fund its invasion.