President Donald Trump has imposed severe sanctions on Russian oil companies in a bid to compel Russian President Vladimir Putin to work toward a ceasefire in Ukraine.
The Treasury Department announced the sanctions in a Wednesday press release explaining that the move is a response to “Russia’s lack of serious commitment to a peace process to end the war in Ukraine.”
Today’s actions increase pressure on Russia’s energy sector and degrade the Kremlin’s ability to raise revenue for its war machine and support its weakened economy. The United States will continue to advocate for a peaceful resolution to the war, and a permanent peace depends entirely on Russia’s willingness to negotiate in good faith. Treasury will continue to use its authorities in support of a peace process.
“Now is the time to stop the killing and for an immediate ceasefire,” said Secretary of the Treasury Scott Bessent. “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 in and adhere to these sanctions.”
Today’s action targets Russia’s two largest oil companies, Open Joint Stock Company Rosneft Oil Company (Rosneft) and Lukoil OAO (Lukoil), which are now designated. Rosneft is a vertically integrated energy company specializing in the exploration, extraction, production, refining, transport, and sale of petroleum, natural gas, and petroleum products. Lukoil engages in the exploration, production, refining, marketing, and distribution of oil and gas in Russia and internationally.
House Speaker Mike Johnson (R-LA) lauded the move, calling it “a very important step” and praising Trump for “returning to peace through strength.”
Russia has proven over and over they cannot be trusted and the sanctions announced by the Trump Administration are a VERY important step.
— Speaker Mike Johnson (@SpeakerJohnson) October 23, 2025
We applaud President Trump's peace through STRENGTH approach to compel Russia to engage in the peace process.
President Trump is the only… pic.twitter.com/MV9eb7rx6r
Trump last week wrote a post on Truth Social saying he had a “very productive” phone call with Putin and indicated that he might meet with him in Budapest in November. However, the plan was later scrapped. While addressing reporters, he complained that “Every time I speak with Vladimir, I have good conversations, and then they don’t go anywhere,” according to The New York Times.
He explained his decision to scupper the Budapest summit that had been planned for some time in the coming weeks. “It just it didn’t feel right to me,” Mr. Trump said. “It didn’t feel like we were going to get to the place we have to get. So I canceled it.”
As for the sanctions?
“I just felt it was the right time,” he said.
The sanctions are among the most significant measures that the United States has taken against the Russian energy sector since the beginning of the war in Ukraine. The Biden administration avoided levying sanctions against the companies to allow for legal purchases of Russian oil by American allies; targeting the companies could make a meaningful dent in Russia’s oil revenues.
Analysts noted that enforcement of the sanctions would be important for determining if they are effective.
“These sanctions are a big step, but they’ve got to either use, or actively threaten to use, secondary sanctions here on third countries,” said Daniel Tannebaum, a partner in the consulting firm Oliver Wyman’s risk and public policy practice and an Atlantic Council fellow.
Trump has taken a more diplomatic approach to persuading Putin to come to the negotiating table. But, as he indicated, there has been no progress toward a peace agreement.
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