U.S. imposes substantial new sanctions on Russian oil giants

Measures against Lukoil and Rosneft come as negotiations over ending the war in Ukraine have stalled

- Robbie Gramer, Alexander Ward & Laurence Norman

The sanctions could bar foreign countries or firms from doing business with Lukoil, Rosneft and their subsidiaries.

(REUTERS)

President Trump has announced substantial new sanctions on Russia's two biggest oil companies as frustration in Washington grows over the war in Ukraine.

The new sanctions, which would be the first direct U.S. measures on Russia during the second Trump administration, target Lukoil and Rosneft as well as nearly three dozen of their subsidiaries. Oil is one of Russia's largest sources of revenue.

The U.S. sanctions could bar foreign countries or companies from conducting business with the oil companies and cut them off from much of the international financial system.

Oil prices surged following the announcement. Brent crude futures, the global oil benchmark, were 3.3% higher Thursday morning.

Asked at the White House why the administration had decided to act against the companies at this stage, Trump said, "I just felt it was time. We waited a long time." He posted the sanctions list on social media, calling on Moscow to agree to an "immediate ceasefire."

"Now is the time to stop the killing and for an immediate ceasefire," said Treasury Secretary Scott Bessent. "Treasury is prepared to take further action if necessary to support President Trump's effort to end yet another war. We encourage our allies to join us in and adhere to these sanctions."

The sanctions come as negotiations over ending the war in Ukraine have stalled, with Trump putting off a planned second summit with Russian President Vladimir Putin in Budapest.

The imposition of sanctions is aimed at sending a clear signal that Trump's patience with Putin is wearing thin as he looks for ways to pressure Russia into a peace deal that ends nearly four years of fighting.