US Secretary of State Marco Rubio recently indicated that Washington is nearing the limit of its sanctioning options against Russia, following a new wave of measures targeting two of the country’s largest oil companies, Lukoil and Rosneft. The developments have been framed as an effort to support Ukraine, as the sanctions were implemented at the request of Kyiv and its allies.
Rubio also highlighted the challenge of continuing to impose penalties on the Russian energy sector, stating that while the US has successfully targeted major oil companies, further action may be constrained. He suggested that the responsibility for enforcing these sanctions should shift to European nations, which are more proximate to the areas where many of these activities take place.
Alongside the direct targeting of oil giants, the US has also disrupted Lukoil’s attempt to sell its foreign assets to a Swiss-based energy trader, which American officials claimed had ties to the Russian government. This action was part of a broader effort to weaken the Russian economy and provide an advantage to Ukraine in the ongoing conflict.
While the US and its allies have pursued extensive sanctions to cripple the Russian economy, Moscow has maintained that its economy remains resilient and has adapted by redirecting trade to non-Western markets. However, Ukraine is facing a severe financial crisis, with concerns that it could run out of funds as early as February without further Western aid. The European Union is considering a €140 billion ‘reparation loan’ to keep Kyiv afloat, with frozen Russian assets serving as collateral. This approach has been met with opposition from some Western states, such as Belgium, which has blocked the plan, citing the need for shared financial and legal risks.