Lithuania stops transporting Lukoil and Rosneft oil over US, UK sanctions
Photo: Sanctions force Lithuania to halt oil transit from Russia (Getty Images)
Lithuanian Railways halts the transit of Russian oil due to US and UK sanctions. After November 21, no shipments of Lukoil or Rosneft products will pass through the country, reports LRT.
The company Lithuanian Railways, which until now had transported Lukoil products in transit to the Kaliningrad region, stated that it will comply with the US and UK sanctions regime restricting sales of Russia’s largest oil companies and will stop such shipments.
Last year, LTG transported a total of 371,000 tons of oil products to the Kaliningrad region, 345,000 tons of which were Lukoil products.
Rosneft oil was not transported through Lithuania either last year or this year. However, in the current year, LTG transported 194,000 tons of Lukoil oil to and from Kaliningrad.
“It is important that none of the LTG group companies have direct contractual relations with Lukoil or Rosneft. Lukoil products are transported in transit from Russia to Kaliningrad by freight forwarders whose names we cannot disclose due to contractual obligations,” LTG said in a statement.
LTG stated that it will follow the recommendations of foreign partners, seeking to minimize business risks.
“After the end of the transition period for completing contracts, LTG will not carry out shipments in which Lukoil or Rosneft companies — sanctioned by the US and the United Kingdom — or their affiliated enterprises are involved in any way,” the company noted.
The US Department of the Treasury predicts that the new sanctions could deprive the Kremlin of up to 30% of its oil and gas revenues.
Sanctions against Russia
On October 23, the United States announced a new package of sanctions targeting the Russian energy sector.
The list included the largest oil companies, Lukoil and Rosneft, along with their subsidiaries. Under the decision, any financial transactions with these companies and their divisions are now prohibited.
Already on October 27, Lukoil announced its intention to sell its international assets following sanctions by the United States and partner countries.
And on October 29, a tanker carrying Russian oil called Furia, which was heading to India, changed course and stopped in the Baltic Sea. This may already indicate that the new US restrictions are beginning to affect Russian oil exports.
Ukrainian intelligence has already recorded significant losses for Russia as a result of the recently imposed sanctions.
According to forecasts, the country’s losses from restrictions on the oil industry alone may exceed $50 billion per year.
