Russia’s largest oil company’s shares fall after reports of new US sanctions

Rosneft stock slumped nearly five percent during
Friday trading on the Moscow Stock Exchange after reports claimed that the US
wants to slap the Russian oil giant with new sanctions over its cooperation
with Venezuela.

As of 2:49pm Moscow time (11:49am GMT) Rosneft
shares were trading at 453.5 rubles (US$7.1) per share, down 4.65 percent from
the previous session.

The drop
came less than two days after the Trump administration announced that it was
going to ramp up pressure against Venezuelan President Nicolas Maduro and his
government. As the self-proclaimed ‘interim president’ of Venezuela, Juan
Guaido, came to the US earlier this week, a White House official told reporters
that Washington does not exclude any option when it comes to “creating pressure,” including
sanctions, on Russian entities “that
are supporting Maduro.”

“We are indeed concerned about the behavior of Rosneft in
Venezuela; how we approach that is a question of internal deliberation which,
obviously, I can’t address,”
 the official said. He also
warned other energy companies, including India’s Reliance, Spain’s Repsol, and
America’s Chevron, against supporting “the
Maduro dictatorship”
 with their activities in Venezuela.

Russian state oil company has not made an official statement on the potential
sanctions yet.

threats add nothing new to the usual Washington rhetoric, Russian Foreign
Minister Sergey Lavrov said on Friday as he hit out at US plans to introduce
new sanctions. “We are
used to it,”
 he said.

is not the first time the Trump administration has expressed plans to target
the Russian company with sanctions over its activities in Venezuela. In
September, US Special Representative for Venezuela Elliott Abrams said that the
oil major “makes a lot
of money in Venezuela”
 and warned that retaliatory measures
could be applied at some point.  
Rosneft fired back the same
day, accusing the US of attempting to create unfair competition and attain an
advantage in the oil market. The company said that it has been investing in the
Venezuelan oil and gas sectors long before the US sanctions emerged and now it
wants to offset the investment, including with crude shipments from the country.


Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *