U.S. President Donald Trump announced on Wednesday Ukraine-related sanctions for the first time in his second term, blacklisting Russian oil major companies Lukoil and Rosneft amid growing frustration with President Vladimir Putin over the war, Reuters reported.
The measures follow the European Union’s (EU) approval of its 19th sanctions package against Moscow, which includes a ban on Russian liquefied natural gas (LNG) imports, and similar action by the U.K. last week.
The U.S. Treasury said it was ready to tighten restrictions further and urged Russia to agree to an immediate ceasefire on Ukraine, to end the war that started in February 2022.
Treasury Secretary Scott Bessent said that the sanctions aim to cut off key funding sources for the Kremlin’s military. Oil prices climbed more than $2 a barrel to about $64 after the announcement.
The step marks a notable policy shift for Trump, who had previously avoided direct sanctions on Russia and focused instead on trade measures. In addition to targeting Lukoil and Rosneft, the Treasury also blacklisted dozens of their subsidiaries, blocking any U.S. assets and prohibiting Americans from conducting business with them.
In the same context, the EU’s sanctions package includes two phases: the short-term LNG contracts that will end within six months, and long-term deals that will terminate on January 1, 2027—one year ahead of the European Commission’s proposed timeline to end reliance on Russian fossil fuels.
The package also imposes new travel curbs on Russian diplomats and blacklists 117 additional vessels, mostly oil tankers, bringing the total to 558. Several banks in Kazakhstan and Belarus were also targeted.
EU diplomatic sources told Reuters that four China-linked oil entities, including two refineries, a trading firm, and a company accused of helping Russia evade sanctions, will be added to the list, though their names will remain confidential until formal adoption on Thursday.
Earlier this year, the U.S. president imposed an additional 25% tariff on Indian goods in response to India’s purchases of discounted Russian crude. The U.S. has so far refrained from similar measures against China; another major buyer of Russian oil.
