U.S. Imposes Sanctions on Russian Oil Firms Over Putin’s ‘Refusal’ to End War in Ukraine

The Trump administration has sanctioned Russia’s top oil firms, Rosneft and Lukoil, in its strongest move yet to cut off funding for Moscow’s war in Ukraine. Treasury Secretary Scott Bessent said the sanctions respond to President Vladimir Putin’s refusal to agree to a ceasefire. The decision came a day after Trump canceled a planned summit with Putin, marking a sharp downturn in U.S.–Russia relations. Analysts say the sanctions could significantly impact Russia’s oil revenues if strictly enforced.

WASHINGTON, Oct 23, 2025 (Reuters) — The United States has imposed sweeping sanctions on Russia’s two largest oil companies, Rosneft and Lukoil, in a bid to choke off funding for the Kremlin’s war in Ukraine after President Vladimir Putin refused to agree to a ceasefire.

The move marks the first major sanctions action against Russia since President Donald Trump returned to office in January, underscoring a sharp escalation in Washington’s pressure campaign on Moscow. The decision came a day after Trump canceled a planned summit with Putin, signaling deepening tensions between the two leaders.

Treasury Secretary Scott Bessent said the sanctions were aimed at cutting off key revenues from Russian oil exports that finance what he called “the Kremlin’s war machine.”

Now is the time to stop the killing and for an immediate ceasefire,” Bessent said in a statement. “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 and adhere to these sanctions.”

The U.K. government sanctioned Rosneft and Lukoil last week, while the European Union has imposed restrictions only on Rosneft, leaving exemptions for member states such as Hungary and Slovakia that remain heavily reliant on Russian crude.

Speaking in the Oval Office alongside NATO Secretary General Mark Rutte, Trump confirmed he had canceled his meeting with Putin, calling it “not the right time” for talks.

We cancelled the meeting with President Putin,” Trump said. “It didn’t feel appropriate given the circumstances.”

Wednesday’s sanctions represent the most direct U.S. attempt yet to slash Russia’s oil revenues abroad. Earlier this year, Trump imposed a 25% tariff on goods from India, describing it as retaliation for New Delhi’s continued purchases of discounted Russian oil.

“Rosneft was the most important Russian firm not yet under full U.S. sanctions,” said Edward Fishman, a former senior State Department sanctions official. “This move will test whether Washington is ready to target not only Russian companies, but also the global traders and refiners that keep Moscow’s oil flowing.”

Fishman added that the impact would depend on how aggressively the U.S. enforces the new measures.

I expect, at the very least, some pullback from dealings with Russian oil in the short term,” he said. “Whether this marks a long-term strategic squeeze on Russia’s oil revenues — the lifeblood of Putin’s economy — will depend on sustained enforcement.”

The announcement was welcomed in Kyiv, where Ukrainian officials hailed the sanctions as a long-awaited step to curb Moscow’s ability to finance its war. European allies also expressed cautious optimism that Washington’s move would strengthen diplomatic pressure on Putin after months of stalled peace efforts.