The Trump administration has targeted the “lifeblood” of Vladimir Putin’s economy, imposing sanctions on Russia’s two largest oil companies, Rosneft and Lukoil. This direct hit on the Kremlin’s main source of revenue is intended to force an end to the war in Ukraine.
This action is the most significant financial penalty levied by the new administration and reflects a growing impatience with Putin’s “maximalist demands.” Treasury Secretary Scott Bessent stated, “Now is the time to stop the killing,” blaming Putin’s “senseless war” for the new measures.
Experts highlighted the importance of this move. Edward Fishman, a former sanctions official, noted that Rosneft was “the most important Russian firm not yet under full US sanctions.” The key, he added, will be whether the US commits to “active, ongoing enforcement” against third parties.
The sanctions were announced a day after President Trump canceled a meeting with Putin, signaling a breakdown in diplomatic efforts. Trump told reporters the summit “didn’t feel right,” suggesting negotiations had hit a wall.
The US is now more aligned with the UK, which recently sanctioned both firms. The EU, which has a ban on Rosneft but not Lukoil, is also preparing a new package of restrictions, including a ban on Russian LNG and measures against Russia’s “shadow fleet” of tankers.