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U.S. President Donald Trump has announced new sanctions against Russia’s two largest energy companies amid Washington’s growing frustration with the ongoing war in Ukraine, The Wall Street Journal reports. These measures mark the first direct U.S. sanctions targeting Russia during Trump’s second term in office.
The sanctions are aimed at Lukoil and Rosneft, as well as nearly 30 of their subsidiaries, according to U.S. officials. The move comes amid stalled ceasefire talks between Moscow and Kyiv. Moreover, Trump has postponed his planned meeting with Russian dictator Vladimir Putin, which was scheduled to take place in Budapest.
“Until today, Rosneft and Lukoil were cut off from U.S. capital markets. Now, they are fully severed from the dollar — from all transactions of any kind,” explained Eddie Fishman, a former senior State Department official responsible for sanctions policy.
In a statement, the U.S. Treasury Department warned that foreign financial institutions engaging in or facilitating significant transactions with Russia’s military-industrial base also risk being sanctioned.
“A Chinese bank, an oil trader from the UAE, or an Indian refinery — if any of them conduct transactions with these Russian companies, they could face U.S. sanctions,” Fishman added.
Analysts say the new restrictions — which target Russia’s ability to export oil and other energy resources — could have a severe impact on the country’s economy.
“Russia’s war machine will take a serious hit. They’re already struggling to finance their government and military, and this will undermine their capacity to sustain the war — potentially pushing Putin to the negotiating table,” said Kim Donovan, a former White House and Treasury official now with the Atlantic Council.
European leaders have long argued that tightening sanctions is key to forcing the Kremlin into meaningful negotiations to end the war. On October 23, the European Union is also expected to approve its 19th sanctions package, which includes a ban on importing liquefied natural gas (LNG) from Russia starting next year.
“EU leaders are also set to back a plan that would provide Ukraine with a $200 billion loan financed by frozen Russian assets. The funds would help sustain Ukraine’s armed forces for the next two years and increase pressure on Moscow to end the war,” WSJ concluded.
