The United States has joined its allies in tightening the economic noose around Russia, announcing new sanctions against the country’s two largest oil companies, Rosneft and Lukoil. The move is a direct response to the Kremlin’s continuation of the war in Ukraine.
The Trump administration’s Treasury Department, led by Secretary Scott Bessent, stated the sanctions were necessary “given President Putin’s refusal to end this senseless war.” The goal is to defund the “Kremlin’s war machine” and support the president’s effort to end the conflict.
This action brings the US into closer alignment with the UK, which sanctioned both firms last week. The European Union has also sanctioned the state-owned Rosneft, though it has not targeted the privately-owned Lukoil due to energy dependencies in Hungary and Slovakia.
European Commission President Ursula von der Leyen celebrated the US announcement. She stated it was a “clear signal from both sides of the Atlantic that we will keep up collective pressure on the aggressor,” highlighting that the EU is also preparing its 19th sanctions package.
The new EU measures are expected to be aggressive, including a ban on Russian LNG, blacklisting “shadow fleet” oil tankers, and targeting banks that help Russia evade existing sanctions. This coordinated pressure marks a setback for Putin, who had perhaps hoped for fractures in the Western alliance.