After delaying new Russia sanctions since taking office in January, US President Donald Trump has now approved a sweeping Treasury action targeting Moscow’s main oil producers. The US Department of the Treasury announced the designations on 22 October, citing Russia’s refusal to engage seriously in peace talks over its war in Ukraine. Treasury Secretary Scott Bessent said the measures aim to degrade the Kremlin’s ability to finance its war effort and urged an immediate ceasefire.
Washington targets Rosneft and Lukoil
According to the Treasury’s Office of Foreign Assets Control (OFAC), the new sanctions cover Russia’s two largest oil companies — Rosneft and Lukoil — along with more than 30 subsidiaries. The entities are now blocked under Executive Order 14024 for operating in Russia’s energy sector. Their property and interests in the United States are frozen, and all transactions by US persons involving them are prohibited.
The Treasury stated that the goal is not punishment but behavioral change, calling the measures a step toward peace if Moscow chooses to negotiate. The sanctions also extend to any company in which Rosneft or Lukoil hold at least 50% ownership, even if not specifically listed by OFAC. The full list of subsidiaries spans refineries, oil fields, and gas operations across Russia.
Bessent: “Time to stop the killing”
In the official statement, US Treasury Secretary Scott Bessent said,
“Now is the time to stop the killing and for an immediate ceasefire.” He added that, “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.”
Bessent said the department stands ready to take further steps if required “to support President Trump’s effort to end yet another war.”
Trump: “We waited a long time”
At a joint press conference with NATO Secretary General Mark Rutte late on 22 October, Trump explained why the US moved only now.
“I just felt it was time. We waited a long time,” he said. “These are tremendous sanctions. Those are against their two big oil companies. And we hope that they won’t be on for long. We hope that the war will be settled.”
Asked whether the sanctions would push Russian President Vladimir Putin toward a deal, Trump replied,
“I don’t know that they will. I think that they’ll certainly have an impact there. They’re massive sanctions. It’s sanctions on oil… and hopefully he’ll become reasonable and hopefully [Ukrainian President Volodymyr] Zelenskyy will be reasonable too. You know, it takes two to tango.”
EU welcomes the move
European Commission President Ursula von der Leyen said she spoke with Bessent on the evening of 22 October and thanked Washington for the decision. In her post on X, she wrote that the sanctions came “in the face of Russia’s lack of commitment to the peace process” and noted that with the EU preparing its nineteenth sanctions package, the joint action shows a “clear signal from both sides of the Atlantic that we will keep up collective pressure on the aggressor.”
Broader US sanctions efforts
Earlier this month, Senate Majority Leader John Thune said the chamber had postponed a sanctions bill targeting Russia and its trade partners until an upcoming Trump–Putin meeting, which has now been canceled. The delay followed weeks of internal debate.
The Senate Foreign Relations Committee later backed three new legislative initiatives aimed at tightening pressure on Russia, including a proposal to designate it as a state sponsor of terrorism.
