The United States has imposed new sanctions on Russia’s two largest oil companies, Rosneft and Lukoil, signaling a significant shift in President Donald Trump’s approach toward ending the war in Ukraine. This marks the first major punitive action against Russia since Trump returned to office in January.
What Has Been Announced
The sanctions, announced by the US Treasury, will freeze all assets of Rosneft and Lukoil held in the United States. American companies and individuals are now barred from doing business with them. Additionally, dozens of subsidiaries tied to these firms have also been targeted. Washington has further threatened secondary sanctions on foreign banks and financial institutions that engage with the sanctioned companies a move that could impact global oil trade, particularly with China, India, and Turkey.
According to Treasury Secretary Scott Bessent, these measures were taken in response to “Putin’s refusal to end this senseless war,” citing Rosneft and Lukoil as key sources of funding for Russia’s military operations. He emphasized that further sanctions could follow if Moscow does not change course.
Why Now?
Trump’s decision comes amid growing frustration over the lack of progress in ending the Ukraine war. During his 2024 campaign, Trump vowed to stop the conflict “within 24 hours” of taking office. However, his administration has since faced mounting challenges, and his stance on the issue has fluctuated from calling for Ukraine to regain its lost territory to suggesting recently that parts of Donbas should remain under Russian control.
Reports indicate Trump canceled a planned second summit with Vladimir Putin, citing Moscow’s uncooperative stance. His recent statements reveal impatience with stalled negotiations, saying, “Every time I speak with Vladimir, I have good conversations, and then they don’t go anywhere.” Analysts suggest the latest sanctions were influenced by domestic political pressure and lobbying from European allies urging tougher action on Russia.
Will It Work?
Experts are divided over whether the sanctions will meaningfully impact Russia’s war efforts. Russia’s oil revenues account for roughly a quarter of its national budget, and these new restrictions could further squeeze its economy. Marshall Billingslea, a former US Treasury official, described the move as “one of the most critical steps yet,” particularly the threat to penalize banks facilitating Russian oil trade.
However, others remain skeptical. Thomas Graham of the Council on Foreign Relations warned that “if the White House thinks this will cause a radical shift in Putin’s strategy, they’re deluding themselves.” He added that Russia has historically been adept at evading sanctions through alternative financial channels.
The sanctions’ success, experts argue, will depend on how rigorously Washington enforces them especially against foreign intermediaries. At the same time, Trump must balance the economic fallout at home, as further pressure on oil markets could drive up fuel prices, undermining his campaign promise to control living costs.
What More Could the US Do?
Allies of Ukraine continue to push the US for stronger measures, including using frozen Russian assets to fund Ukraine’s defense. While the European Union is reportedly considering a €140 billion ($162 billion) loan backed by these assets, the US appears reluctant to endorse such a move directly.
Ukrainian President Volodymyr Zelenskyy is also lobbying for long-range weapons to strike deep into Russian territory. His recent appeal for Tomahawk missiles was rejected after Trump’s phone call with Putin, though reports suggest the administration may still allow allied-supplied weapons, such as Britain’s Storm Shadow missiles, to be used in such operations.
Despite criticism, Trump insists that his administration has not imposed restrictions on Ukraine’s use of Western-supplied weapons, stating, “The US has nothing to do with those missiles, wherever they may come from, or what Ukraine does with them.”
Ultimately, while the sanctions represent a bold move in Trump’s foreign policy, their effectiveness will hinge on enforcement, global cooperation, and the Kremlin’s capacity to adapt to economic isolation.
