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The Moscow Exchange (MOEX) opened sharply lower on Thursday after the United States and the European Union announced new sanctions targeting Russia’s energy sector.
The MOEX index fell by over 3.5%, or 92.95 points, to 2,560, led by declines in state oil companies Lukoil and Rosneft, which dropped more than 3% before partially recovering following the U.S. decision to place them on its sanctions blacklist. The MOEX Oil and Gas Index also tumbled by more than 3.6%.
The Russian ruble also weakened by 0.5% against the U.S. dollar, with the exchange rate reaching 81.0900 rubles per dollar.
Washington’s latest sanctions targeting Rosneft, Lukoil, and their subsidiaries accuse Moscow of showing a "serious lack of commitment" to peace efforts in Ukraine. The move aims to further isolate Russia’s energy sector, which remains a key source of revenue for its wartime economy.
The decision triggered a sharp rise in global oil prices, with West Texas Intermediate (WTI) crude climbing by 4% to $60.86 per barrel, while Brent crude rose by 3.7% to $64.95.
"This will be one of the largest sanctions that we have done against the Russian Federation," the U.S. Treasury Secretary Scott Bessent said in his statement regarding the move.
In parallel, the European Commission approved its 19th sanctions package, targeting for the first time liquefied natural gas (LNG) imports from Russia. The measures also cover Russian banks, cryptocurrency platforms, and what EU officials describe as the country’s "shadow fleet" —vessels used to transport sanctioned oil.
European Commission President Ursula von der Leyen said the EU is "hitting at the heart of Russia’s war economy" by restricting LNG imports and will keep up pressure on Moscow until Ukraine secures a just peace. Foreign policy chief Kaja Kallas added that the package also limits Russian diplomats’ movement and tightens controls on entities in India and China accused of helping Russia evade sanctions.
EU member states plan to phase out Russian LNG purchases by January 2027, targeting over 100 tankers involved in oil transport and several financial institutions linked to sanction evasion. The bloc has now imposed restrictions on more than 2,500 individuals and entities since 2022, alongside earlier bans on oil, banking, and luxury goods sectors.
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