Washington, D.C. — FDD Action today applauded the U.S. Department of the Treasury’s designation of Russia’s two largest oil companies, Rosneft and Lukoil, under Executive Order 14024. The designations encompass the totality of these oil giants and dozens of their subsidiaries. FDD Action has long supported increased pressure on Russia’s lucrative oil sector, recognizing that economic pressure is vital to raising costs on Vladimir Putin, ending the bloodshed, and achieving President Trump’s aim of an enduring ceasefire.
“FDD Action commends the Treasury Department for taking this unprecedented step,” said Matt Zweig, Managing Director of Policy at FDD Action. “The administration is designating the entirety of Russia’s massive energy conglomerates, which includes entities spanning exploration, production, refining, and distribution. This is exactly the kind of bold action needed to hold Russia accountable, increase costs on Vladimir Putin, and compel him to end his continued aggression in Ukraine.”
The sanctions introduce significant secondary sanctions risk for foreign individuals, entities, and foreign financial institutions doing business with Rosneft and Lukoil.
“FDD Action strongly supports these comprehensive sanctions,” Zweig added. “The long-term success of these sanctions depends on rigorous enforcement. We urge the Congress and the administration to dedicate the necessary resources to implementation and oversight, while also taking steps to strengthen the broader sanctions architecture.”
Implementation Timeline: Treasury issued multiple general licenses for a 30-day wind-down of sanctionable conduct. The restrictions will take effect after this transition period.
Operational Disruption: The sanctions make it exponentially harder for Russia’s oil industry to operate internationally, cutting off crucial access to global financial systems and trade networks.
International Financial Exposure: Foreign banks, trade finance institutions, refineries, ports and port operators, and asset managers now face serious compliance challenges. Export financing, trade settlements, and asset management involving these Russian oil giants all carry substantial sanctions risk for non-Russian institutions.
Enforcement Challenge: The real-world impact will depend on Treasury’s enforcement of both sanctionable and prohibited conduct. Critical questions remain regarding which international banks, energy companies, oil traders, and refineries are exposed. Treasury’s enforcement posture will determine their long-term effectiveness.
FDD Action is a non-profit, non-partisan 501(c)(4) organization established to advocate for effective policies to promote U.S. national security and defend free nations. For more information, visit www.fddaction.org.