Steep Decline in Russian Oil Giants’ Shares Following U.S. Sanctions
In the wake of newly imposed sanctions by the United States against Russia’s two largest oil corporations — Rosneft and Lukoil — their stock prices on the Moscow Exchange plummeted, causing significant financial losses and undermining investor confidence.
According to data from local financial institutions, over two trading days — Thursday and Friday — these companies’ market capitalization shrank by more than 424 billion rubles, approximately $5.2 billion USD.
This represents a substantial blow to their market value.
Specifically, Rosneft’s shares on October 20 traded at 389.85 rubles per share, down by 3% compared to pre-sanction levels.
During the session, quotes dipped to 383.15 rubles, the lowest since May 2023, effectively reducing the company’s valuation by around 127 billion rubles, or about $1.56 billion USD.
Lukoil’s shares suffered an even more pronounced decline of 7.2%, amounting to over 297 billion rubles — roughly $3.66 billion USD.
The company’s main shareholder, Russian billionaire Vagit Alekperov, who controls 28% of the shares, lost approximately 83 billion rubles, or about $1 billion USD, over these two days.
Earlier, in mid-year reports, both companies reported significant profit reductions — Rosneft’s profits decreased threefold, and Lukoil’s halved.
Analysts from Alfa Bank warn that new U.S.
restrictions will intensify financial pressure, as the risk of secondary sanctions may prompt some partners to cease cooperation, leading to decreased export volumes.
Sanctions include not only the main offices but also 30 subsidiaries of Rosneft and six units of Lukoil, complicating the operations of trading structures such as Dubai-based Litasco Middle East and oil supplies to India.
On October 22, the U.S.
Treasury officially announced sanctions against these oil giants, urging the Kremlin to cease hostilities in Ukraine and agree to a ceasefire.