The Trump administration on Wednesday imposed sweeping sanctions on Russia’s two largest oil producers — Rosneft and Lukoil — as part of a renewed effort to pressure Moscow into agreeing to an immediate ceasefire in its ongoing war with Ukraine.
President Donald Trump, who for weeks had hinted at potential punitive measures against Russia, said he had “waited long enough” before making the decision. Speaking from the Oval Office, Trump said the timing “felt right,” though he added he hopes the restrictions “won’t be on for long” if the conflict ends soon.
“It’s time to stop the killing,” Treasury Secretary Scott Bessent said in a statement announcing the sanctions. “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 emphasized that the U.S. is ready to take additional action “if necessary” to support the president’s diplomatic push to end the fighting. He also urged Washington’s allies to adopt similar measures, saying, “We encourage our allies to join us and adhere to these sanctions.”
The sanctions target Rosneft, Lukoil, and nearly three dozen subsidiaries. The move follows similar actions by the United Kingdom last week and coincides with the European Union’s latest package of penalties, approved Wednesday. EU sanctions envoy David O’Sullivan is expected to meet with Treasury Undersecretary John Hurley in Washington on Thursday to discuss coordinated enforcement.
Ukrainian Ambassador to the U.S. Olga Stefanishyna welcomed the move, calling it a “decisive step after months of patience.”
“Peace is possible only through strength and sustained pressure on the aggressor using every international tool available,” Stefanishyna posted on X, formerly Twitter.
She added that Ukraine expects “strong decisions” from European leaders following the upcoming European Council meeting.
The announcement also comes amid growing diplomatic frustration. Russia has resisted calls to pause the fighting for peace talks, while Western nations have pushed for negotiations.
Trump revealed that he had canceled a planned meeting with Russian President Vladimir Putin in Budapest, saying the summit “just didn’t feel right.” He noted, however, that he expects to meet Putin “at some point in the future.”
Earlier reports from CNN indicated that plans for the meeting had stalled, with a senior administration official confirming there were “no immediate” plans for such a summit.
Experts say the real test will come down to enforcement.
“Primary sanctions on Rosneft and Lukoil are significant, but what really matters is whether Washington follows up with secondary sanctions on global banks, traders, and refiners dealing with those companies,” said Eddie Fishman, senior fellow at the Atlantic Council.
The Biden administration had previously sanctioned several Russian energy firms but stopped short of targeting Rosneft and Lukoil, citing global oil market volatility and potential domestic price impacts.
Bessent described Wednesday’s action as “one of the largest sanctions packages” yet under the Trump administration, reflecting what he called the president’s “disappointment” with Moscow’s unwillingness to negotiate.
“President Putin has not come to the table in an honest, forthright manner as we hoped,” Bessent said in a Fox Business interview. “These are not symbolic measures — these are powerful sanctions that will bite.”
The Treasury Department said additional guidance for U.S. companies and financial institutions affected by the sanctions would be released later this week.