The United States has blacklisted Rosneft and Lukoil, Russia’s two dominant oil companies, in a powerful move aimed at defunding Vladimir Putin’s “war machine” in Ukraine. This marks the first major sanctions against Russia under the new Trump administration.
The Treasury Department, in its announcement, explicitly stated the goal is to cut key revenues from oil sales that finance the Russian military. Secretary Scott Bessent called for an “immediate ceasefire” and blamed Putin directly for the “senseless war.”
This action signals a growing frustration within the White House over Putin’s “maximalist demands” in peace negotiations. It follows a period where the administration appeared to be pressuring Kyiv, but the pendulum has now swung decisively toward Moscow.
The sanctions were accompanied by a diplomatic chill, as President Trump canceled a forthcoming summit with Putin. Trump explained the cancellation by saying, “It didn’t feel right to me,” and that he saw no path to success at this time.
The international community is now watching to see how strictly the US will enforce these sanctions. An expert noted that the real test will be whether Washington threatens foreign banks, traders, and refineries that continue to facilitate the sale of Russian oil, which is the “lifeblood” of Putin’s economy.