The United States has unveiled new sanctions targeting Russia's two largest oil companies, Rosneft and Lukoil, in a bid to compel Moscow toward negotiations in the ongoing Ukraine conflict.
This move follows President Donald Trump's decision to indefinitely postpone a planned summit with Russian President Vladimir Putin in Budapest.
The sanctions represent a departure from Trump's earlier stance, where he had withheld such measures pending European reductions in Russian oil purchases.
Announced on Wednesday, the penalties aim at entities funding Russia's war efforts, with Rosneft accounting for nearly half of the nation's oil production — 6 percent of global output.
The companies export 3.1 million barrels daily, primarily to China, India, and Turkey.
Trump expressed frustration over unproductive talks, stating:
Every time I speak to Vladimir, I have good conversations and then they don't go anywhere.
He described the package as "tremendous" and hoped for its swift reversal if Russia halts hostilities.
The Kremlin dismissed the sanctions as ineffective, claiming Russia is "immune" and that such actions disrupt global fuel supplies while complicating dialogue.
U.S. Treasury Secretary Scott Bessent emphasized the necessity of the measures due to "Putin's refusal to end this senseless war."
Ukraine's President Volodymyr Zelensky welcomed the step as a "good signal," suggesting it could foster a ceasefire with broader international pressure.
He noted, "The new U.S. sanctions against Russia’s oil giants are a clear signal that prolonging the war and spreading terror come at a cost."
European leaders echoed support; EU Commission President Ursula von der Leyen highlighted a parallel EU ban on Russian liquefied natural gas by 2028 as transatlantic unity.
UK Chancellor Rachel Reeves affirmed there is "no place for Russian oil on global markets."
NATO Secretary General Mark Rutte praised the sanctions for intensifying pressure on Putin during White House discussions of a 12-point peace plan.
This includes freezing front lines, repatriating deported children, prisoner exchanges, a war recovery fund, security guarantees, and Ukraine's EU pathway.
Russia has rejected freezing lines, insisting on Ukrainian withdrawal from eastern Donbas regions.
Oil prices surged Wednesday, signaling potential disruptions, though analysts predict muted effects on Russia's economy.
Russia has adapted via "shadow fleets" of uninsured vessels and third-country intermediaries to evade restrictions.
Tatiana Stanovaya of R.Politik observed that Putin views the war as existential, willing to endure hardships, with Russians likely shrugging off the measures.
Sergey Vakulenko, an energy expert, added that challenges for Lukoil would not broadly cripple Russia.
The sanctions coincide with intensified Ukrainian strikes on Russian energy sites and recent bombardments killing civilians in Kyiv.
Trump declined Zelensky's request for Tomahawk missiles, citing complexity and training needs, though Zelensky hinted at possible future reconsideration.
As ground fighting persists, the measures underscore a volatile U.S. policy shift from mediation hopes to punitive action.