New US sanctions have brought down the value of Rosneft and Lukoil
25 October 11:17
The shares of Russia’s largest oil companies, Rosneft and Lukoil, have fallen sharply amid US sanctions against them and their subsidiaries. The drop amounted to several billion dollars.
This was reported by "Komersant Ukrainian" with reference to Russian propaganda media.
In two days, according to the stock exchange, the total capitalization of both companies decreased by 424 billion rubles ($5.2 billion). Rosneft shares fell by 3%, and the company lost $1.56 billion. Lukoil’s shares fell more heavily – by 7.2%, causing losses of $3.66 billion.
Lukoil’s main owner, Russia’s richest billionaire, Vagit Alekperov, was hit separately. He lost more than 83 billion rubles, or just over a billion dollars, in two days.
The newspaper notes that the problems are only just beginning: “Rosneft and Lukoil may lose contractors and a place in foreign markets. This year alone, the companies have already faced a sharp deterioration in their financial performance several times: the former’s profits have fallen three times, while the latter’s have halved.
Due to the US sanctions, Rosneft and Lukoil may have problems with oil supplies to India (Rosneft) and trading operations in Dubai (Lukoil). The problem is that, along with the main companies, 36 of their subsidiaries have been sanctioned, meaning that there are almost no loopholes.
“Export volumes may decline while the logistics are being rebuilt, and discounts are likely to expand,” Dmitry Polyovoy, investment director at Astra Asset Management, told the publication.
On the night of October 23, the United States announced sanctions against two of Russia’s largest oil companies, Rosneft and Lukoil, to force Putin to the negotiating table with Ukraine. The main companies and a total of 36 of their subsidiaries were subject to restrictions.
