Andrey Kaut18:46, 17.11.25

The US-announced sanctions against two Russian oil giants will take effect on November 21.

On Thursday, the price of Russian Urals crude oil in the Black Sea port of Novorossiysk fell to $36.61 per barrel, the lowest since March 2023, Bloomberg reports .

Demand for Russian oil on international markets has plummeted after US President Donald Trump’s administration blacklisted Rosneft and Lukoil on October 22 to increase pressure on Kremlin dictator Vladimir Putin to end the war in Ukraine.

For Russian oil companies, falling prices will reduce the amount of taxes they pay into Moscow’s coffers, helping to finance the war in Ukraine. Oil and gas revenues account for about a quarter of the country’s state budget.

Several refineries in China, India, and Turkey are already suspending fuel purchases and seeking alternative supply sources, rather than waiting for the November 21 deadline when sanctions come into effect.

Urals crude began trading at significant discounts to international benchmark prices following the announcement of sanctions. Discounts on this crude from the two regions rose to an average of $23.52 per barrel compared to the Brent benchmark at the end of last week, the highest since June 2023.Read also:

This indicates that buyers are cautious about trading Russian barrels. The US has warned of the possibility of secondary sanctions for those who continue to buy oil from Russia.

(C)UNIAN 2025