Trump Imposes Harsh Sanctions on Russia’s Top Oil Firms Over War

President Donald Trump has unleashed crippling sanctions on Russia’s two largest oil companies, Rosneft and Lukoil, signaling a sharp escalation in response to Russian President Vladimir Putin’s refusal to advance ceasefire talks in Ukraine. Announced on October 22, 2025, by Treasury Secretary Scott Bessent, the sanctions target the financial backbone of Moscow’s war machine, hitting nearly three dozen subsidiaries to choke off funds fueling Russia’s nearly four-year conflict in Ukraine.

“President Putin’s refusal to end this senseless war has forced Treasury to act, targeting Russia’s largest oil firms that bankroll the Kremlin’s aggression,” Bessent stated. The measures, described as among the most significant against Russia to date, come after Trump abruptly canceled a planned summit with Putin in Budapest, citing a lack of progress in negotiations. The decision follows a October 17 phone call where Trump had expressed hope for a breakthrough, only to declare on October 21 that a meeting risked being a “wasted effort” due to Putin’s intransigence.

The sanctions reflect growing frustration with Moscow’s stance, particularly after a fruitless August 15 meeting in Anchorage, Alaska, where Trump walked away from stalled talks. Bessent, speaking to Fox Business, noted, “President Putin has not been honest or forthright, and the president is disappointed with the state of these discussions.” The move also aligns with Trump’s dual approach of pressuring both Moscow and Kyiv, as he recently urged Ukrainian President Volodymyr Zelensky to consider territorial concessions while rejecting requests for long-range Tomahawk missiles.

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The U.S. action coincides with intensified Russian military activity, including missile strikes on Kyiv that killed seven on October 22 and nuclear drills involving intercontinental ballistic missiles. The sanctions aim to disrupt Russia’s oil revenue, a critical lifeline for its war efforts since the February 2022 invasion. Rosneft, a state-controlled giant, and Lukoil, a major private player, had largely evaded full U.S. sanctions until now, making this a pivotal blow.

Globally, allies have echoed the U.S. stance. The European Union, on the same day, rolled out sanctions banning Russian liquefied natural gas imports by 2027, blacklisting Moscow’s oil tankers, and restricting Russian diplomats’ travel. The UK had already targeted Rosneft and Lukoil last week, while the EU’s earlier measures spared Lukoil to accommodate nations like Hungary. During a White House meeting on October 22 with NATO Secretary General Mark Rutte, Trump reaffirmed his commitment to ending the war, hinting at leveraging upcoming talks with Chinese President Xi Jinping to pressure Moscow indirectly.

The sanctions sent oil markets reeling, with Brent and West Texas Intermediate crude prices jumping over two percent in after-hours trading on October 23, as fears of supply disruptions grew. Analysts, including former State Department official Edward Fishman, praised the sanctions as a “major policy shift” for Trump, who had previously leaned on tariffs, like a 25% levy on Indian goods for buying Russian oil, rather than direct penalties. However, experts like Jeremy Paner stress that secondary sanctions on third-country entities, such as banks in India or China, will be crucial for impact.

For Ukraine, the sanctions are a welcome boost amid strained U.S. relations. A senior Kyiv official called the move “great news,” especially as Trump’s recent rhetoric has occasionally mirrored Putin’s narratives. Zelensky’s White House visit yielded little beyond pressure for concessions, and Trump noted that equipping Ukraine with advanced weaponry could take months. As the U.S. navigates this delicate balance, the sanctions underscore Trump’s strategy: wielding economic might to force Putin toward negotiations while signaling to allies and adversaries alike that America’s patience has limits.

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