US imposes sanctions on 2 Russian oil companies:Trump calls Putin ‘not honest’; move over disagreement to end Russia-Ukraine war

The United States has imposed sanctions on Russia’s two largest oil companies Rosneft and Lukoil, to curb Moscow’s ability to finance its war in Ukraine and to push for a ceasefire. This came after Trump called Putin ‘not honest and fortnight’. The US Department of the Treasury said the measures aim to restrict Russia’s energy revenue and weaken its war machine. All assets of Rosneft and Lukoil under US jurisdiction are now frozen, and American entities are barred from doing business with them. The sanctions also extend to subsidiaries and entities owned 50% or more by either company. Today’s actions increase pressure on Russia’s energy sector and degrade the Kremlin’s ability to raise revenue for its war machine and support its weakened economy the Treasury said in a statement. The United States will continue to advocate for a peaceful resolution, but lasting peace depends on Russia’s willingness to negotiate in good faith Treasury Secretary Scott Bessent called for ‘an immediate ceasefire,’ adding that the sanctions were imposed in response to President Vladimir Putin’s refusal to end the conflict. Given Putin’s refusal to end this senseless war, Treasury is sanctioning Russia’s two largest oil companies that fund the Kremlin’s war machine. Treasury is prepared to take further action if necessary to support President Trump’s effort to end yet another war Bessent said. Rosneft and Lukoil are both key players in Russia’s energy industry. Rosneft focuses on exploration, production, refining, and transport of oil and gas, while Lukoil operates across exploration, refining, and marketing in Russia and abroad. The Treasury’s Office of Foreign Assets Control (OFAC) also designated several Russia-based subsidiaries of both companies. It warned that foreign financial institutions engaging in transactions with the sanctioned entities could face secondary sanctions, including restrictions on access to the US financial system. Unless authorised by OFAC, all transactions by US persons or within the United States involving property of blocked persons are prohibited the statement added. It also noted that violations could result in civil or criminal penalties. OFAC emphasised that the goal of sanctions is not punitive but to encourage behavioural change, and it may remove individuals or entities from its sanctions list in accordance with the law. Persons listed under the executive order may also face additional export restrictions from the US Department of Commerce’s Bureau of Industry and Security.