The United States has announced sweeping new sanctions on Russia’s two largest oil companies, Rosneft and Lukoil, as President Donald Trump ramps up pressure on Moscow to end its ongoing invasion of Ukraine.
The announcement came shortly after Trump revealed that a planned peace meeting with Russian President Vladimir Putin in Budapest had been shelved indefinitely.
“Every time I speak to Vladimir, I have good conversations, and then they don’t go anywhere,” Trump said at the White House.
The move marks a significant shift in Trump’s foreign policy, after months of hesitation to target Russia’s lucrative energy sector. The sanctions, also joined by new measures from the European Union and United Kingdom, aim to choke off Moscow’s vital oil revenue streams that fund its war efforts.
Trump described the decision as a “tremendous sanctions package”, expressing hope that the measures would be temporary if Moscow agrees to a ceasefire.
“I just felt it was time. We waited a long time,” he said. “We hope the war will be settled soon.”
US Treasury Secretary Scott Bessent said the restrictions were necessary to hold Russia accountable for “Putin’s refusal to end this senseless war,” adding that the oil firms were “central to the Kremlin’s war machine.”
Rosneft and Lukoil together account for about 3.1 million barrels of oil per day, with Rosneft responsible for nearly half of Russia’s total production, or roughly 6% of global supply, according to UK government data.
Russia’s key buyers include China, India, and Turkey, but Trump has urged these nations to cut purchases as part of a coordinated global pressure campaign. Reports from Reuters suggest that India may reduce imports following the new US sanctions, though China has voiced opposition.
The sanctions follow similar moves by London and Brussels. The UK announced parallel restrictions last week, while the EU has endorsed a plan to ban Russian liquefied natural gas imports by 2028.
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EU Commission President Ursula von der Leyen hailed the transatlantic action, calling it “a clear signal that the free world will maintain collective pressure on the aggressor.”
Meanwhile, NATO Secretary General Mark Rutte, who was at the White House during the announcement, praised the step, saying “sustained pressure” was essential to bringing Putin back to the negotiating table.
Ukrainian President Volodymyr Zelensky, who recently visited Washington seeking advanced long-range missiles, welcomed the sanctions as a “good signal” from the US, saying, “A ceasefire is possible if other nations follow suit.”
However, the situation on the battlefield remains volatile. Overnight strikes in Kyiv killed at least two people, while Russian bombardments earlier in the week left seven civilians dead, including children.
In southern Ukraine, power was restored to the Zaporizhzhia nuclear power plant after 30 days without electricity a development the UN nuclear watchdog described as “a crucial step for nuclear safety and stability.”
The Kremlin dismissed the sanctions as ineffective, with spokesman Dmitry Peskov insisting that Russia was “immune” to Western pressure. Moscow’s embassy in London warned that the sanctions could “destabilize global energy markets” and “complicate peace efforts.”
Despite growing frustration, Trump reiterated that diplomacy remained on the table.
“We want peace, not endless conflict,” he said. “But we will not stand by while innocent lives are lost.”
