The Trump administration announced a new round of sanctions Wednesday targeting Russia’s two largest oil companies, an effort officials said is aimed at pressuring Moscow into agreeing to a cease-fire and eventual peace deal to end the war in Ukraine.
The sanctions, unveiled by the Treasury Department, restrict U.S. business dealings with Russian energy giants Rosneft and Lukoil, as well as their subsidiaries in which the firms hold at least a 50 percent stake. The move marks one of the most significant economic measures against Russia since President Donald Trump returned to office, and underscores growing U.S. frustration with Russian President Vladimir Putin’s refusal to engage seriously in peace talks.
“Now is the time to stop the killing and for an immediate ceasefire,” Treasury Secretary Scott Bessent said in a statement announcing the measures. “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. Treasury is prepared to take further action if necessary to support President Trump’s effort to end yet another war. We encourage our allies to join us and adhere to these sanctions.”
The sanctions are imposed under a Biden-era executive order that expanded the U.S. government’s authority to penalize Russia for “harmful foreign activities.” The restrictions effectively prohibit Americans and U.S.-based companies from conducting most financial transactions with the targeted entities.
Trump Pushes for “Deal” to End the War
The action comes days after Trump publicly discussed possible penalties for Russia’s continued military campaign in Ukraine. The president said he had spoken separately with both Putin and Ukrainian President Volodymyr Zelenskyy about ending the nearly four-year-old war.
In a post on Truth Social last Friday, Trump said it was time for both sides to stop fighting and “make a DEAL,” suggesting that current territorial lines in Ukraine should remain in place to facilitate a cease-fire.
“Enough blood has been shed, with property lines being defined by War and Guts. They should stop where they are. Let both claim Victory, let History decide! No more shooting, no more Death, no more vast and unsustainable sums of money spent,” Trump wrote.
The Kremlin swiftly rejected Trump’s proposal, saying Moscow’s position on the conflict “remains unchanged.”
Shift in U.S. Strategy
Trump’s push for peace represents a shift from earlier talk of arming Ukraine with long-range weapons to deter further Russian advances. Reports earlier this week suggested the U.S. had approved Ukraine’s use of British-made Storm Shadow cruise missiles to strike targets inside Russia—a claim Trump later denied.
“The Wall Street Journal story on the U.S.A.’s approval of Ukraine being allowed to use long range missiles deep into Russia is FAKE NEWS!” Trump wrote on Truth Social. “The U.S. has nothing to do with those missiles, wherever they may come from, or what Ukraine does with them!”
Diplomatic Channels Strained
A planned in-person summit between Trump and Putin in Budapest was canceled this week, with the White House citing scheduling issues. Instead, Secretary of State Marco Rubio spoke by phone with Russian Foreign Minister Sergey Lavrov on Tuesday.
“The Secretary emphasized the importance of upcoming engagements as an opportunity for Moscow and Washington to collaborate on advancing a durable resolution of the Russia-Ukraine war, in line with President Trump’s vision,” said State Department spokesman Tommy Pigott in a statement.
Speaking to reporters later, Trump confirmed he had canceled his meeting with Putin but declined to offer details.
Cease-fire talks between the U.S., Ukraine, and Russia have largely stalled as the war nears its fourth anniversary. Russia invaded Ukraine in February 2022, launching an assault aimed at taking control of the country. Moscow now controls roughly 20 percent of Ukrainian territory after years of brutal fighting and heavy casualties on both sides.
Economic Pressure Builds on Moscow
Analysts say the latest sanctions could significantly limit the Kremlin’s ability to raise revenue from energy exports, which remain the backbone of Russia’s economy and its war financing. Rosneft and Lukoil together account for the vast majority of Russia’s oil output and export earnings.
U.S. officials said they expect allied nations in Europe and Asia to follow Washington’s lead in tightening restrictions on Russian energy trade. However, some economists warned that the measures could also contribute to short-term volatility in global oil prices.
The administration has not ruled out additional sanctions or further diplomatic action if Putin continues to resist peace talks.
