The U.S. aimed the sanctions at a few large Russian firms that keep high U.S. dollar debt levels, and Rosneft falls into the category. The sanctions prevent these companies from borrowing money in U.S. dollars for more than 90 days, which forces them to borrow in other currencies for new medium-term or long-term funding.
But these sanctions do not restrict oil sales or joint ventures with U.S. companies, so they should not affect Rosneft's oil sales. BP said it was studying the sanctions, and it initially believes they appear to restrict access to U.S. medium and long-term debt and equity capital markets, according to Reuters.
Must Read: Warren Buffett's 25 Favorite Stocks
The stock was down 2.16% to $51.15 at 12:55 p.m.
Separately, TheStreet Ratings team rates BP PLC as a "buy" with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate BP PLC (BP) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, good cash flow from operations, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income."