The global tire industry is far from immune from the effects of international affairs, as Pirelli SpA majority shareholder has learned.

In its continuing response to Russia’s involvement in the current unrest in Ukraine, the U.S. government last week turned up the heat, placing Russian oil giant Rosneft on its economic sanctions list. The sanctions, according to European tire media, were announced in response to unrest in Ukraine but were put in place before the fate of Malaysian Airlines flight MH17 was uncovered.

Experts from various countries allege pro-Russian forces in Ukraine, using a Russian-made rocket launcher, shot down the civilian airliner, killing nearly 300 passengers and crew.

President Obama, in his July 16 announcement about the new sanctions on Russia, said the U.S. and its allies have “repeatedly made it clear that Russia must halt the flow of weapons and fighters across the border into Ukraine; that Russia must urge separatists to release their hostages and support a cease-fire; that Russia needs to pursue internationally mediated talks and agree to meaningful monitors on the border.”

In its own statement on July 18, Rosneft said the new sanctions won’t prevent it from pursuing current initiatives and paying dividend to its investors.

Rosneft owns a 13% share of Pirelli indirectly, and the two companies are working together on a number of retail and raw material production initiatives in Russia. Part owned by the Russian government, not only does Rosneft face strict U.S. economic sanctions, its CEO Igor Sechin has also been targeted by the U.S.

The statement said, “Rosneft has no influence on either political or economic processes ongoing in Ukraine. For this reason, the above-mentioned sanctions are illegitimate and groundless.

“Rosneft is a public company traded on Russian and international exchanges. Therefore, the sanctions inflict damage upon the company shareholders, including U.S. citizens and residents. The company is currently in the process of a legal review of the announced sanctions, and is consulting its international partners.

“The company will continue to work on the existing projects and agreements.

“Rosneft financial position is robust. Rosneft’s operating cash flows allow us to carry on with our current projects. The company’s financial position also allows us to deliver on the key indicators of our strategy and dividend policy.

“Rosneft possesses sufficient liquidity to service its debts and honor its contractual obligations.”