US penalties are having a significant impact on Russia

US Sanctions Intensify Pressure on Russian Oil Industry

In October, the Trump administration imposed sanctions on Russia’s leading oil producers, Rosneft and Lukoil. This move was significant for two main reasons. First, it represented the administration’s initial use of sanctions targeting Russia. Second, it greatly increased the risks associated with purchasing Russian oil, as US secondary sanctions could potentially block buyers from accessing Dollar-based payment systems. At the time, I anticipated that the price gap between Urals crude and Brent would grow considerably—and that prediction has come true. The value of Urals oil has dropped even further compared to Brent in percentage terms.