US Slaps Sanctions on Russia’s Two Biggest Oil Firms
The United States imposed sanctions on Russia’s two largest oil companies, Rosneft and Lukoil, along with dozens of their subsidiaries. The move was announced by the Treasury Department, which cited President Donald Trump’s frustration over stalled cease-fire talks in Ukraine and accused Russia of refusing to negotiate seriously.
Strategic Rationale
Treasury Secretary Scott Bessent stated the sanctions target companies that “fund the Kremlin’s war machine,” underlining how oil-revenues support Russian military action. The sanctions impose asset freezes and financial restrictions aimed at cutting off these firms’ access to the U.S. financial system.
Economic Impact & Global Response
Oil prices responded immediately, with Brent crude rising more than US $2 per barrel on the news. The EU has backed similar measures and is preparing further sanctions packages targeting Russia’s energy sector. Analysts warn companies trading with or financing the affected firms may face increased scrutiny.
Broader Implications
The sanctions mark a shift in U.S. strategy — from pressuring Ukraine to toughening economic actions on Russia’s energy backbone. Experts say the move signals the U.S. may be willing to accept higher global energy prices to reduce Russia’s military funding. The decision will likely heighten tensions between Russia and the West, and could trigger retaliatory actions.
