The Treasury Department announced a sweeping new round of sanctions Wednesday targeting Russia’s powerful oil sector—one day after President Donald Trump confirmed he had canceled a planned meeting with Russian President Vladimir Putin over the ongoing war in Ukraine.
“Now is the time to stop the killing and for an immediate ceasefire,” Treasury Secretary Scott Bessent said in a statement. “Given President 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. We encourage our allies to join us and enforce these sanctions.”
According to the announcement, the sanctions target Rosneft and Lukoil—Russia’s two biggest oil producers—as well as several of their subsidiaries. Both firms, valued at over $50 billion each, remain pillars of Russia’s economy and are among the largest companies listed on the Moscow Stock Exchange.
A senior White House official told NBC News that President Trump acted decisively on the timing of the measures. “The president leads by instinct, and he felt the time [for the sanctions] was appropriate,” the official said.
Trump’s latest diplomatic push for peace reportedly hit a setback during a tense call between Secretary of State Marco Rubio and Russian Foreign Minister Sergey Lavrov. According to officials familiar with the exchange, Lavrov became “exercised” when Rubio reiterated U.S. and European demands for a ceasefire before negotiations could begin—something Moscow has consistently rejected.
“I don’t want to have a wasted meeting; I don’t want to have a waste of time,” President Trump told reporters Tuesday, confirming reports that the planned summit with Putin in Budapest would be postponed. He declined to elaborate on the details, saying only that he would “see what happens” as developments unfold.
The president has faced mounting pressure from Ukrainian President Volodymyr Zelenskyy, European partners, and members of Congress from both parties to expand sanctions on Russia and press for an end to the conflict.