The Moscow Times: Lukoil billionaire loses over $1 billion after US sanctions

Russia’s richest businessman, Vagit Alekperov, lost more than $1 billion in just two days after the United States imposed sanctions on Lukoil and Rosneft, the country’s two largest oil producers.

Alekperov, who owns a 28% stake in Lukoil, saw his wealth fall by 83 billion roubles (just over $1 billion) as the company’s shares plunged 7.2% following the announcement. The drop wiped 297 billion roubles ($3.66 billion) off Lukoil’s market value, according to Moscow Exchange data, Caliber.Az reports via The Moscow Times.

Shares in Rosneft also declined sharply, falling 3% to 389.85 roubles per share by late trading on October 23, after briefly hitting their lowest level since May 2023. The company’s market capitalizsation dropped by 127 billion roubles ($1.56 billion). Overall, the combined value of Rosneft and Lukoil fell by 424 billion roubles ($5.2 billion) over October 23–24.

Analysts said the new US sanctions — the first since Donald Trump’s return to the White House — could deepen the financial troubles facing Russia’s energy sector. Both companies had already reported a steep decline in profits earlier this year, with Rosneft’s earnings falling threefold and Lukoil’s halving in the first half of 2025.

The restrictions target not only the parent firms but also 30 Rosneft subsidiaries and six Lukoil subsidiaries. Analysts at Alfa Bank warned that the sanctions could deter international partners and disrupt exports, as foreign buyers and banks may avoid transactions with Russian companies due to the risk of secondary sanctions. Lukoil could also be forced to scale back its trading operations in Dubai, while Rosneft may struggle to maintain oil deliveries to India.

Dmitry Polevoy, investment director at Astra Asset Management, said Russian oil exports may decline as logistics are reorganised, likely increasing discounts on Russian crude. He added that rising global oil prices or a weaker rouble could cushion some of the losses.

According to Alor Broker, much will depend on whether the US extends secondary sanctions to banks processing oil payments. Since much of the world’s crude is sold through intermediaries rather than directly by producers, such restrictions could further complicate Russia’s oil trade.

By Sabina Mammadli