Rosneft, Lukoil lose $5.2B in market value after new US sanctions

​​​​​​​By Alperen Aktas

ISTANBUL (AA) – The market value of Russia’s two largest oil producers, Rosneft and Lukoil, dropped $5.2 billion after the US imposed new sanctions targeting the companies and their subsidiaries.

Rosneft shares declined 3% to 389.85 rubles ($4.19) late Friday, after falling to 383.15 rubles ($4.12) -- their lowest since May 2023 -- wiping out 127 billion rubles from its market capitalization.

Lukoil’s stock plunged 7.2% in two days, erasing 297 billion rubles ($3.66 billion).

Lukoil’s main shareholder, billionaire Vagit Alekperov, who holds a 28% stake, lost 83 billion rubles in two days, according to market data.

Analysts said the sanctions, the first since Donald Trump’s return to the White House, could further weaken Russia’s energy sector.

“Export volumes may decline while logistics are being restructured, and discounts on Russian oil will likely widen,” said Dmitry Polevoy, investment director at Astra Asset Management, the Moscow Times reported.

Alfa Bank analysts warned that the number of Rosneft and Lukoil’s foreign partners may shrink due to fears of secondary sanctions, which could disrupt supplies to key markets such as India and the United Arab Emirates.

Rosneft’s profits fell threefold and Lukoil’s by half in the first half of 2025, marking a steep financial downturn before the latest sanctions.

Analysts at Alor Broker said future market effects will depend on whether the US targets banks servicing Russian oil flows, noting that “foreign banks may not formally make payments to Russian companies, since oil is typically sold through traders.”

Rosneft and Lukoil shares led the decline Friday among blue-chip stocks on the Moscow Exchange.