The Trump administration has announced sweeping sanctions on Russia’s two largest oil companies, Rosneft and Lukoil, marking Washington’s toughest response yet to Moscow’s ongoing war in Ukraine.
President Donald Trump, who had delayed punitive measures for weeks, said he “canceled” his planned meeting with Russian President Vladimir Putin because progress toward peace seemed impossible.
“I felt it was time,” Trump said from the Oval Office. “I waited a long time to impose them. I hope they won’t last long, because I believe this war will end soon.”
Treasury Secretary Scott Bessent confirmed the sanctions, saying it was time “to stop the killing and reach an immediate ceasefire.”
“Given President Putin’s refusal to end this senseless war, Treasury is sanctioning Russia’s two largest oil companies that fund the Kremlin’s war machine,” Bessent said, warning that the U.S. could impose further restrictions if needed.
The sanctions, which target Rosneft, Lukoil, and nearly three dozen of their subsidiaries, follow similar measures imposed last week by the United Kingdom. The European Union also adopted a new sanctions package Thursday, including a ban on Russian liquefied natural gas imports.
According to the U.S. Treasury, its sanctions envoy David O’Sullivan will meet with senior U.S. officials to coordinate the next steps.
Ukraine’s ambassador to Washington, Olga Stefanishyna, praised the move, saying it aligns with Kyiv’s stance that “peace is only possible through strength and international pressure on the aggressor.”
Diplomatic talks between Moscow and Kyiv have repeatedly failed, as Russia continues to reject any ceasefire deal that could freeze the conflict.
Trump was expected to meet Putin in Budapest but said he canceled because “it didn’t feel right.” He added that a future meeting could still happen.
Experts say the true impact of the sanctions will depend on whether the U.S. enforces secondary measures on foreign companies dealing with Rosneft and Lukoil.
“These primary sanctions are significant, but their effectiveness will depend on whether Washington extends them to third parties,” said Eddie Fishman of the Atlantic Council.
The announcement came just hours after Russia launched another large-scale airstrike on Ukraine, including Kyiv, causing power outages across several cities.
Bessent described the sanctions as “among the largest” imposed so far and emphasized that Trump was “deeply disappointed” in Putin’s failure to negotiate peace.
“These sanctions are powerful,” Bessent said, “and we urge our G7 partners, along with Canada and Australia, to follow our lead.”