Trump sanctions Russia's two largest oil companies
What's the story
United States President Donald Trump has imposed sanctions on Russia's two largest oil companies, Lukoil and Rosneft. The sanctions were imposed over President Vladimir Putin's "refusal to end this senseless war" in Ukraine and Moscow's "lack of serious commitment" to the peace process. US Treasury Secretary Scott Bessent announced that these sanctions are aimed at pressuring Russia's energy sector and crippling its revenue sources for the war effort.
Asset freeze
Sanctions block US assets of Russian firms
"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," Bessent said. "We encourage our allies to join us in and adhere to these sanctions," he said. The sanctions announced by Bessent block the US assets of Lukoil and Rosneft. They also prohibit Americans from engaging in business with these firms. Notably, Chinese and Indian buyers of Russian oil are exempt from these sanctions.
Diplomatic tensions
Trump's patience with Putin wearing thin
Trump's patience with Russian President Putin seems to be wearing thin as ceasefire talks remain stalled. He recently postponed a planned meeting with Putin in Hungary, saying, "It just didn't feel right." The US president expressed hope that the sanctions would not be in place for long but also indicated growing anger with the stalling peace talks. "Every time I speak with Vladimir, I have good conversations, and then they don't go anywhere. They just don't go anywhere," he said.
Energy embargo
EU's new sanctions package
On the same day the US sanctions were announced, the EU announced its 19th package of sanctions against Russia. The EU's new sanctions package includes a ban on Russian liquefied natural gas (LNG) imports. Slovakia had initially held out due to concerns over high energy prices and climate targets but has now agreed after new clauses were added to meet its demands. The sanctions also impose travel restrictions on more Russian diplomats and add vessels to Moscow's shadow fleet list.
Firms
2 oil firms
Kremlin-controlled Rosneft is Russia's second-largest corporation in terms of revenue, trailing only gas behemoth Gazprom, but it has been severely hit in recent years by sanctions and decreasing oil prices. In September, it reported a 68% year-on-year drop in net income for the first half of 2025. Lukoil, Russia's third-biggest company and largest non-state enterprise, also reported a 26.5 percent drop in profits for 2024, citing higher taxes as Moscow funds its military effort in Ukraine.