President Donald Trump has imposed sanctions on Russia’s two largest oil companies, Rosneft and Lukoil, while canceling a planned summit with Russian President Vladimir Putin. This move signals a renewed push to pressure the Kremlin without committing to deeper U.S. involvement in Ukraine’s war.
The sanctions, announced under Executive Order 14024, freeze U.S.-linked assets of Rosneft and Lukoil and prohibit American entities from doing business with them. Dozens of subsidiaries are also affected, effectively extending the restrictions across much of Russia’s global oil and gas network. Treasury Secretary Scott Bessent stated that the actions are aimed at ending the war, emphasizing, ‘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.’
China’s state oil giants have already suspended purchases of Russian crude, according to reports by Reuters. This, along with reduced Russian oil imports from Indian refiners, is expected to strain Russia’s oil revenues and tighten global supply, potentially driving up prices for non-sanctioned crude from the Middle East, Africa, and Latin America.
Analysts note the sanctions are intended to recapture leverage and force both Moscow and Kyiv to return to the negotiating table after months of stalemate. The Trump administration’s approach has been characterized by alternating bursts of engagement and confrontation, making it difficult for adversaries and allies to predict his next move. Trump expressed frustration with previous negotiations, stating, ‘I canceled the meeting with President Putin… because I felt it wasn’t going to get us to the place we have to get.’