The Treasury Department under President Donald Trump sanctioned Russia’s two largest oil producers, Rosneft and Lukoil, on Wednesday, escalating pressure on the Kremlin to end its war in Ukraine.
Treasury Secretary Scott Bessent said the move targets the oil companies that “fund the Kremlin’s war machine” and called on Moscow to agree to an “immediate ceasefire.”
“We canceled the meeting with President Putin,” Trump told reporters in the Oval Office alongside NATO Secretary Gen. Mark Rutte on Wednesday, not long after the sanctions were announced. “It just, it didn’t feel right to him. It didn’t feel like we were going to get to the place we have to get, so I canceled it. But we’ll do it in the future.”
Bessent said in a Treasury Department news release announcing the sanctions that the bloodshed in Ukraine must stop.
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“Now is the time to stop the killing and for an immediate ceasefire,” Bessent said. “Given President [Vladimir] Putin’s refusal to end this senseless war, the Treasury is sanctioning Russia’s two largest oil companies that fund the Kremlin’s war machine. The 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.”
The sanctions block dozens of subsidiaries tied to both energy giants and signal a broader push to isolate Russia’s economy and to “degrade the Kremlin’s ability to raise revenue for its war machine.” Officials say more action could follow if Russia continues to refuse peace talks.
“I think that they’ll certainly have an impact there. They’re massive sanctions and sanctions on oil. The two biggest oil companies, among the biggest in the world,” Trump said during a press gaggle in the Oval Office alongside NATO Secretary Gen. Mark Rutte Wednesday not long after the sanctions were announced.
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“But they’re Russian. They do a lot of oil. And, hopefully it’ll push. Hopefully, [Putin] become reasonable and hopefully [Ukrainian President Volodymyr] Zelenskyy will be reasonable to, you know, it takes two to tango.”
The Treasury’s release echoed Trump’s sentiments, pointing the finger at Moscow.
“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,” the Treasury Department said.
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The sanctions’ authority, Executive Order 14024, was used to justify the move.
U.S. allies were encouraged to follow suit, and all assets under American jurisdiction are now frozen.
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