In the latest development, the United States imposed sanctions on Russia’s two biggest oil companies, Rosneft and Lukoil, on Wednesday to restrict Moscow’s war funding and increase pressure to end the conflict in Ukraine.
The announcement came from the Trump administration as Russia conducted nuclear training drills.
The move followed Washington’s decision to delay a planned summit between President Donald Trump and Russian President Vladimir Putin. The sanctions aim to cut off financial sources supporting Moscow’s war operations and send a strong message about Washington’s position on the ongoing conflict.
Treasury Department Announces New Sanctions on Energy Giants
The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) issued sanctions targeting Rosneft, Lukoil, and several of their subsidiaries. President Donald Trump called the sanctions “tremendous,” adding that he hoped they would be lifted once peace was achieved.
He stated that the timing felt appropriate to take decisive action. The sanctions block all properties of the companies within US jurisdiction, preventing any American individual or institution from engaging in transactions with the targeted entities unless approved by the Treasury.
US Links Peace to Russia’s Willingness for Negotiation
In its official statement, OFAC explained that the sanctions were introduced due to Russia’s “lack of serious commitment” toward peace talks to end the war in Ukraine.
The department said the measures increase pressure on Russia’s energy sector and weaken its ability to raise funds for its war machinery. Treasury officials emphasized that a permanent peace depends on Russia’s willingness to negotiate in good faith.
Treasury Secretary Scott Bessent said the sanctions were part of a larger diplomatic plan aimed at securing an immediate ceasefire in Ukraine.
US Blocks Assets and Expands Restrictions Under New Order
Under the new executive order, the Treasury designated Rosneft and Lukoil for operating in Russia’s energy sector. The order blocks all property and interests belonging to both companies under US jurisdiction.
Rosneft operates as a state-linked energy firm engaged in oil exploration, refining, and exports, while Lukoil functions as a private multinational active in refining, marketing, and distribution. OFAC extended restrictions to subsidiaries owned 50 percent or more by the two firms. US citizens and institutions must halt all transactions with these companies unless specifically licensed.
The European Union approved its 19th sanctions package against Russia, introducing the bloc’s first-ever ban on Russian liquefied natural gas (LNG). The plan includes ending short-term LNG contracts within six months and terminating long-term agreements by January 1, 2027 – a year earlier than planned. The package also added 117 ships from Russia’s “shadow fleet,” bringing the total to 558, and imposed new travel curbs on Russian diplomats. Additionally, the EU blacklisted several banks from Kazakhstan and Belarus for assisting Moscow in bypassing sanctions.
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Swastika Sruti is a Senior Sub Editor at NewsX Digital with 5 years of experience shaping stories that matter. She loves tracking politics- national and global trends, and never misses a chance to dig deeper into policies and developments. Passionate about what’s happening around us, she brings sharp insight and clarity to every piece she works on. When not curating news, she’s busy exploring what’s next in the world of public interest. You can reach her at [swastika.newsx@gmail.com]
