President Donald Trump announced a significant escalation of sanctions on Russia on Wednesday, as part of a broader strategy to pressure the Russian government to bring an end to the ongoing conflict in Ukraine. The new sanctions target Russia’s top oil companies—Rosneft Oil and Lukoil OAO—following what the Treasury Department described as Russia's lack of "serious commitment" to a peace process.
The U.S. Department of the Treasury, through its Office of Foreign Assets Control (OFAC), is imposing sanctions on these companies under Executive Order 14024, which targets entities operating within the energy sector of Russia’s economy. The move is part of an ongoing effort to reduce the Kremlin’s ability to fund its military operations and weaken its economy.
According to the Treasury Department’s press release, the sanctions aim to increase pressure on Russia’s energy sector and degrade the Russian government’s ability to generate revenue to support its war efforts. The sanctions extend to dozens of subsidiaries of Rosneft and Lukoil, particularly those involved in exploration, production, and refining operations. The sanctions also target companies in which these oil giants hold a 50 percent or greater stake.
In a statement, Treasury Secretary Scott Bessent emphasized that the sanctions were a direct result of Russia’s refusal to engage in meaningful negotiations to end the war in Ukraine. "Now is the time to stop the killing and for an immediate ceasefire," Bessent said. "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."
President Trump reiterated his stance on the matter during an Oval Office meeting with NATO Secretary General Mark Rutte. “These are tremendous sanctions,” Trump remarked, expressing hope that the sanctions wouldn’t last long and that the war would soon come to an end.
The sanctions also direct that any property or assets of the sanctioned entities within U.S. jurisdiction must be reported to OFAC and are blocked from use. Furthermore, U.S. persons and entities are prohibited from engaging in transactions involving these blocked entities. The sanctions also threaten foreign financial institutions that facilitate significant transactions with Russia’s military-industrial base, including Rosneft and Lukoil, with their own potential sanctions.
Trump has made ending the war in Ukraine a top priority since returning to office, using various economic tools like tariffs to bring pressure to bear on Russia. For instance, in late August, he imposed a 25 percent additional tariff on India after reports surfaced that India was purchasing Russian oil.
With these latest sanctions, Trump continues his hardline approach, hoping that increased economic pressure will bring Russia to the negotiating table and ultimately end the conflict. The administration is also urging its allies to follow suit and align with these sanctions in the effort to bring about a ceasefire.
