As reported by The Moscow Times
Following the United States’ new sanctions against Russia’s two largest oil companies, Rosneft and Lukoil, their shares on the Moscow Exchange fell.
This information has been confirmed by reports.
According to the exchange, over the two days – Thursday and Friday – the combined market capitalization of Rosneft and Lukoil fell by 424 billion rubles, which is about 5.2 billion US dollars.
At the time of trading, Rosneft’s share price stood at about 389.85 rubles per share – down 3% from the level before the sanctions were imposed; during the intraday trading session, quotes dropped to 383.15 rubles – the lowest since May 2023. This volatility led to a reduction in the company’s market value by 127 billion rubles (approximately 1.56 billion US dollars).
Lukoil’s shares over the same period fell by 7.2%, or 297 billion rubles (about 3.66 billion dollars at the official central bank rate).
Lukoil’s main owner – Russia’s richest billionaire, Vagit Alekperov, who owns about 28% of the shares, lost about 83 billion rubles over the two days, exceeding 1 billion dollars.
Economic Impact and Prospects
Based on the first half of the year, the financial results of both companies have already come under substantial pressure: Rosneft’s profit fell threefold, Lukoil’s – by half. The sanctions introduced by the US Treasury could worsen the situation: a reduction in the number of counterparties and a potential decrease in supplies to external markets, according to Alfa-Bank analysts.
The US sanctions affect not only the companies themselves but also 30 Rosneft subsidiaries and six Lukoil subsidiaries. It is also possible that Lukoil’s trading operations through its Dubai-based unit (Litasco Middle East) could be suspended, while Rosneft could face supply issues to India.
As previously reported, on October 22 the US Treasury announced the imposition of sanctions against Russia’s two largest oil companies – Rosneft and Lukoil – and Washington urged Moscow to agree to a ceasefire in Ukraine.
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