U.S. President Donald Trump on Wednesday imposed Ukraine-related sanctions on Russia for the first time in his second term, targeting oil companies Lukoil and Rosneft as his frustration grows with Russian President Vladimir Putin over the war. The U.S. Treasury Department said it was prepared to take further action as it called on Moscow to agree immediately to a ceasefire in Russia's war in Ukraine, which began in February.
Trump's measure on Wednesday followed Britain's sanctioning of Rosneft and Lukoil last week. Analysts said the measures were a big step but long overdue. "This can't just be one and done," said Edward Fishman, a former U.S. official who is now a senior research scholar at Columbia University. He said the question will be whether the U.S. now threatens sanctions on anyone doing business with Rosneft and Lukoil.
"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 Secretary Scott Bessent said in a statement. "We encourage our allies to join us in and adhere to these sanctions."
The sanctions are a major policy shift for Trump, who had not put sanctions on Russia over the war and instead relied on trade measures. Trump imposed additional 25% tariffs on goods from India in retaliation for it purchasing discounted Russian oil.
The U.S. has not imposed the tariffs on China, another major buyer of Russian oil. A $60 price cap on Russian oil imposed by Western countries after Russia's invasion has shifted Russia's oil customers in recent years from Europe to Asia.
