The United States has imposed new sanctions on Rosneft and Lukoil, the two largest oil companies in Russia, aiming to exert greater pressure on the Kremlin in its ongoing conflict with Ukraine. This decision by the Trump administration marks the first set of sanctions against Russia since President Trump resumed his position in the White House earlier this year, focusing specifically on reducing crucial revenue streams from oil sales that fund Russian military operations.
Treasury Secretary Scott Bessent highlighted the urgency of the situation, calling for an immediate ceasefire in Ukraine and stressing that the sanctions were a direct response to President Putin’s refusal to halt the war. “Now is the time to stop the killing,” Bessent stated, as he encouraged allies to adhere to the newly imposed sanctions.
Following the UK’s recent sanctions against Rosneft and Lukoil, the EU has already sanctioned Rosneft but has refrained from doing the same for Lukoil, largely due to exemptions for nations like Hungary and Slovakia, which continue to import Russian oil. Trump’s decision to cancel a planned summit with Putin signals a growing frustration with ongoing negotiations. “It didn’t feel like we were going to get to the place we have to get so I cancelled it,” Trump explained.
In a related development, while a report by the Wall Street Journal suggested that the Trump administration lifted restrictions on Ukraine’s usage of British-supplied Storm Shadow cruise missiles, Trump promptly denied these claims, labeling them as “FAKE NEWS.” “The U.S. has nothing to do with those missiles, wherever they may come from, or what Ukraine does with them,” he asserted.
These sanctions represent a continued effort to cut off Russian oil revenue, which could potentially impact the Russian economy significantly. Edward Fishman, a former senior sanctions official, noted that Rosneft had remained one of the major players not yet subjected to full U.S. sanctions. The long-term effects of this move will depend on the U.S.’s commitment to robust enforcement against entities facilitating the sale of Russian oil.
The sanctions are viewed as a victory for Ukraine and its European allies, especially as fears grew regarding Trump’s inclination to accept Putin’s terms for peace, which suggested concessions from Ukraine. European Commission President Ursula von der Leyen voiced her support for the sanctions, stating they signal a united front against Russian aggression.
In upcoming initiatives, the EU is poised to introduce further sanctions, including a ban on Russian liquefied natural gas imports and restrictions targeting ships associated with Russian oil transportation. These measures are part of a broader strategy to keep the pressure on Russia and to limit its operational capabilities amidst ongoing hostilities.