Washington, D.C. — After months of stalled diplomacy, a cancelled Trump–Putin summit, and a new wave of Russian missile strikes against civilians, the United States has imposed its first Ukraine-related sanctions of President Donald Trump’s second term. The measures target Russia’s two largest oil giants — Rosneft and Lukoil — marking a significant escalation in Washington’s economic pressure campaign against Moscow.
According to the U.S. Treasury Department, the sanctions are designed to cut off a vital source of funding for the Kremlin’s war operations. The move freezes all U.S.-based assets belonging to the companies and prohibits American citizens and businesses from conducting any transactions with them. The restrictions also extend to dozens of affiliated subsidiaries.
The announcement followed hours after Russia launched a series of deadly missile attacks on Ukrainian cities, killing at least seven civilians. On the same day, Moscow conducted a major nuclear drill involving launches from land-based systems, submarines, and long-range bombers — a move widely seen as a show of defiance.
In a formal statement, Treasury Secretary Scott Bessent said,
“Now is the time to stop the killing and call for an immediate ceasefire. Given President Putin’s refusal to end this senseless war, Treasury is sanctioning Russia’s two largest oil companies that fuel the Kremlin’s war machine.”
According to the BBC, Rosneft alone accounts for nearly half of Russia’s total oil output, while Rosneft and Lukoil together export around 3.1 million barrels per day. Oil and gas constitute Russia’s primary revenue stream, representing roughly 6% of global supply.
Why Now? What Changed Trump’s Position?
President Trump had long resisted direct energy sanctions on Russia, seeking to preserve diplomatic channels. However, a planned Trump–Putin summit in Budapest collapsed earlier this week, apparently convincing the White House that dialogue had reached a dead end.
“It didn’t feel like we were going to get to the place we have to get,” Trump said, explaining his decision. “Every time I speak to Vladimir, we have good conversations — but they don’t go anywhere.”
European and U.K. Alignment
The U.S. announcement was swiftly echoed across the Atlantic. The European Union unveiled its 19th sanctions package against Russia on the same day, featuring:
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A phased ban on Russian liquefied natural gas (LNG) imports
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Travel restrictions on Russian diplomats
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The blacklisting of an additional 117 tankers from Russia’s “shadow fleet,” raising the total to 558 vessels
European Commission President Ursula von der Leyen welcomed the U.S. coordination, stating on X (formerly Twitter):
“With the imminent adoption of the EU’s 19th package, this is a clear signal from both sides of the Atlantic that we will maintain collective pressure on the aggressor.”
The United Kingdom had already imposed similar sanctions a week earlier. Announcing the move, Chancellor Rachel Reeves declared, “There is no place for Russian oil on global markets.”
Despite this transatlantic unity, analysts note a critical loophole: the sanctions do not extend to third-party countries such as China, India, and Turkey, which continue to purchase Russian crude.
Former U.S. official Edward Fishman cautioned, “This can’t just be one and done. The key question is whether Washington will threaten sanctions on anyone doing business with Rosneft and Lukoil.”
Jeremy Paner, a former U.S. Treasury sanctions investigator, added, “Without targeting the banks and buyers in India or China, these measures won’t get Putin’s full attention.”
Trump, addressing reporters from the Oval Office, said he hoped the sanctions would be temporary.
“I hope they won’t be on for long — because the war will end,” he said.
Kyiv Welcomes the Move
Ukraine, which has repeatedly urged tougher sanctions on Russia’s energy sector, welcomed Washington’s decision.
Ukrainian Ambassador to the U.S. Olga Stefanishyna wrote on X:
“The decision is fully aligned with Ukraine’s position: peace is only possible through strength and pressure on the aggressor using all available international tools.”
President Volodymyr Zelenskyy also renewed his request for long-range U.S. Tomahawk missiles, but Trump declined, stating that Ukraine would need “at least six months” to learn how to operate them effectively.
Can Sanctions Shift the War’s Trajectory?
Until now, the Trump administration’s Ukraine strategy had leaned on diplomacy, tariffs, and indirect pressure. This marks the first time in Trump’s second term that direct economic coercion has been used explicitly to weaken Russia’s war effort.
By targeting Rosneft and Lukoil — the backbone of Russia’s energy economy — the U.S. is effectively striking at the heart of the Kremlin’s financial resilience. Yet experts warn of two major constraints.
First, these are primary sanctions, meaning they apply only to U.S. entities. The absence of secondary sanctions, which would penalize foreign firms trading with sanctioned Russian companies, leaves Moscow room to redirect exports to non-Western buyers.
Second, oil and gas remain globally intertwined commodities. As long as China, India, and Turkey continue purchasing Russian energy, Western sanctions may slow but not cripple the Kremlin’s revenue stream.
Speaking to Fox Business, Bessent underscored the U.S. strategy:
“These are sanctions, not secondary tariffs. They’re substantial and powerful, and we’re urging our European, G7, Canadian, and Australian allies to move in lockstep.”
The timing — just days after the failed Trump–Putin summit — signals a shift in Washington’s approach. The administration appears to be abandoning hopes for a rapid negotiated settlement in favor of economic attrition: increasing the cost of war until Russia is compelled to negotiate.
However, whether this approach can force Moscow’s hand remains uncertain. Some analysts fear that President Putin may interpret the sanctions as a provocation, entrenching his position rather than softening it. With the Kremlin reaffirming its demand for full control of Donbas and rejecting Trump’s “freeze the frontlines” proposal, the immediate diplomatic horizon appears bleak.
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