US sanctions two major Russian oil companies in bid to pressure Kremlin over Ukraine war

The United States on Wednesday imposed sanctions on Russia’s two largest oil companies — Rosneft and Lukoil — in an effort to pressure the Kremlin into negotiating a truce with Ukraine. Announced by the US Department of the Treasury, the embargo is designed to undermine Russia’s ability to fund its war efforts by targeting a key pillar of its economy.

“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,” the statement read.

Prepared to take further actions, says Treasury secretary

Secretary of the Treasury Scott Bessent said the action followed Russian President Vladimir Putin’s refusal to agree to a ceasefire with Ukraine. Bessent added that the US could take additional measures to help bring an end to “yet another” war.

“Now is the time to stop the killing and for an immediate ceasefire. 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,” he said.

US to freeze assets of Russian energy giants

Under the latest measures, all assets of the two firms in the US will be frozen, and American individuals and businesses will be barred from conducting financial transactions with them.

The restrictions also extend to any company in which Rosneft or Lukoil hold a 50 per cent or greater ownership stake. This means such entities are automatically considered blocked, even if they have not been individually named by the US Treasury’s Office of Foreign Assets Control (OFAC).

Rosneft is one of Russia’s largest vertically integrated energy groups, involved in oil and gas exploration, extraction, refining, transportation and sales. Lukoil operates across similar sectors, engaging in the exploration, production, refining, marketing and distribution of petroleum and natural gas both in Russia and abroad.