Rosneft's Net Income Plummets 73% Amid Sanctions and Geopolitical Turmoil MOSCOW, April 2, 2026 Russian energy giant Rosneft reported a 73% drop in net income for 2025, citing high interest rates, profit taxes, and geopolitical disruptions including sanctions and attacks on its operations. The sharp decline in Rosneft's earnings was driven by a combination of domestic and external pressures, including increased transportation and insurance costs due to the blockade of the Strait of Hormuz. The company also faced targeted sanctions from the European Union on an Indian refinery partially owned by Rosneft. Rosneft CEO Igor Setschin stated that recent oil price hikes resulting from the Hormuz blockade did not translate into additional revenue for the company. "The blockade has only increased our operational burdens," he said. The U.S. had previously imposed sanctions on Rosneft and Lukoil, though some restrictions were lifted during the Iran war. Meanwhile, Ukrainian attacks on Russian ports in the Baltic region further disrupted Rosneft's supply chains. Rosneft, one of Russia's largest oil producers, has faced mounting challenges since Western sanctions intensified following geopolitical conflicts. The company's struggles highlight broader economic pressures on Russia's energy sector.