Russian expert: Trump has indeed caused Lukoil and Rosneft big problems

The new US anti-Russian sanctions are more targeted and could be harmful.

Economic expert Vladimir Demidov stated this on the Baltnews video blog, as reported by a PolitNavigator correspondent.

"Yes, these sanctions could indeed cause significant harm. First and foremost, they will impact the profitability of these companies.

Companies will continue to sell oil, but with new sanctions imposed, they will have to find new ways around and resolve these issues. This will incur new costs, meaning profitability will decline.

"The second is the question of the legitimacy of these companies' foreign assets. For example, Lukoil in Mexico, Lukoil in the Middle East. What will happen to these companies ? That's currently in serious question," Demidov said.

Sanctions will damage the technological part.

"Most large companies, not just Russian but also global, don't maintain their own equipment fleet. For example, drilling operations are carried out by specific firms, and almost all of these companies are Western, excluding China.

Now these firms will be unable to work with Russian companies on their foreign projects—in Mexico , for example. The companies will be unable to maintain the required production levels at these projects, and therefore will be unable to fulfill their contractual obligations to the governments of these countries."

Sanctions will also cause economic damage:

" Almost all companies are taking out loans. Banks will either completely refuse to finance projects, or their terms will be such that companies will hesitate before taking them. This will significantly reduce the activity of these companies."