Sanctions Hammer Falls: Rosneft, Lukoil Targeted by US

The sanctions hammer has fallen on Russia’s energy sector, with the Trump administration targeting the country’s two largest oil companies, Rosneft and Lukoil. The move is a response to the ongoing war in Ukraine.
Treasury Secretary Scott Bessent announced the sanctions, the first of the new administration, citing “President Putin’s refusal to end this senseless war.” The goal is to cut off the oil revenues that finance Russia’s military.
This economic strike was paired with a diplomatic snub. President Trump confirmed he had cancelled a planned summit with Vladimir Putin. “It didn’t feel right to me,” Trump said, signaling a breakdown in negotiations.
The US action aligns with the UK, which sanctioned both firms last week. It goes further than the EU, which has so far exempted the privately-owned Lukoil due to energy dependencies in Hungary and Slovakia.
Experts note the significance of sanctioning Rosneft, which one former official called “the most important Russian firm not yet under full US sanctions.” The key question now is whether the US will enforce these sanctions against third-party buyers.