Trump levies new sanctions on Russian oil giants in a push to end Ukraine war | KPBS Public Media
Trump’s new sanctions on Rosneft and Lukoil mark a major escalation in US efforts to pressure Moscow. The move could strain Russia’s economy, test global oil markets, and reshape the diplomatic path to ending the war in Ukraine.
US Sanctions on Russian Oil: Trump Targets Rosneft and Lukoil to Pressure Moscow Over Ukraine War
US President Donald Trump has announced new sanctions on Russia’s two largest oil companies, Rosneft and Lukoil, in a direct move to pressure Moscow to end its war on Ukraine.
According to US Treasury Secretary Scott Bessent, these companies fund the Kremlin’s “war machine.” The sanctions mark the first major intervention by the Trump administration targeting Russia’s energy industry.
Which Companies Are Targeted?
The sanctions, issued by the US Treasury’s Office of Foreign Assets Control (OFAC), blacklist Rosneft and Lukoil, which together account for nearly half of Russia’s crude oil exports.
Rosneft, led by Igor Sechin, a close ally of President Vladimir Putin, produces about half of Russia’s oil output — roughly 6% of global production. Lukoil, a private company, exports millions of barrels daily, helping fund Moscow’s war budget.
Why Now?
Trump’s decision comes after months of stalled talks with Putin and a failed summit in August. Ending the war in Ukraine has become one of Trump’s central goals, especially after he helped broker a ceasefire in Gaza.
Washington and its allies had previously hesitated to target Russian energy due to global market concerns. But Putin’s refusal to stop the war finally prompted action.
The move follows similar sanctions by the UK last week and signals growing Western unity against Russia’s aggression.
The Significance of the Move
Experts say the sanctions carry both symbolic and economic weight. John Herbst, former US Ambassador to Ukraine, said they would hurt Russia’s economy but might not immediately bring peace.
Bill Taylor, another former ambassador, called the move “a strong message” to Putin that the US expects serious negotiations.
Impact on the War
Analysts believe the sanctions may push Moscow to reconsider its stance, though not right away. Dr. Stuart Rollo of the University of Sydney said the goal is to limit Russia’s ability to wage war and push it toward a peace deal through economic strain.
Michael Raska of Singapore’s Nanyang Technological University noted that the sanctions are unlikely to change the battlefield situation soon but will force Russia into tough choices between military spending and domestic stability.
Broader Economic Impact
Oil and gas fund roughly 25% of Russia’s federal budget. The sanctions could hit Moscow’s finances hard and also affect key buyers like China and India.
China bought over 100 million tonnes of Russian crude last year, nearly 20% of its total imports. India’s purchases have surged since 2022, now valued at around $140 billion.
Trump urged both nations to scale back their imports or face potential secondary sanctions. Reports say Indian refiners are already reviewing their deals with Rosneft and Lukoil to avoid US penalties.
Effect on Global Oil Prices
Following the announcement, Brent crude prices jumped 5%, reflecting fears of supply disruptions. The UK’s earlier sanctions caused only a smaller rise of about 1.6%.
Experts predict this spike will be short-lived unless secondary sanctions on shipping and finance are strictly enforced.
Dr. Rollo added that long-term oil prices are unlikely to change drastically unless the US expands restrictions.
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