New US designations for the Russian energy sector

The U.S. sanctions pause has ended. The U.S., especially OFAC, had a significant list of pending actions. The designation of Lukoil and Rosneft is mainly symbolic but clearly signals Washington’s intention to limit the Kremlin’s energy revenues. Any future measures will most likely target Russia’s energy sector, where the U.S. holds substantial leverage. More importantly, even though only two companies (and their subsidiaries) were designated, this move indicates that the U.S. is resuming its use of economic measures and will strictly enforce them.