US President Donald Trump has imposed sanctions on Russia's two largest oil companies, Rosneft and Lukoil, marking a significant shift in his administration's approach to the ongoing war in Ukraine. This action, announced on Wednesday, is aimed at pressuring the Kremlin to cease hostilities and engage in peace talks. The sanctions come as frustration mounts over Russian President Vladimir Putin's refusal to negotiate, with the war now entering its fourth year.

The US Treasury Department stated that these sanctions are intended to degrade Russia's ability to fund its military operations. "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," said Treasury Secretary Scott Bessent. The sanctions freeze the US assets of Rosneft and Lukoil and prohibit American individuals and entities from conducting business with them.

Both companies are crucial to Russia's economy, accounting for nearly half of the country's crude oil exports. The sanctions follow similar actions by the European Union and the UK, which have also targeted these companies in response to the war. Oil prices reacted to the news, with Brent crude futures rising significantly.

Trump expressed hope that the sanctions would not be long-lasting, stating, "I just felt it was time," and emphasized the need for a peaceful resolution to the conflict. He also cancelled a planned summit with Putin, indicating that the timing was not right for such discussions.

Analysts have noted that while these sanctions are a significant step, they may not be sufficient to compel a change in Russia's actions. Edward Fishman, a former US official, remarked, "This can’t just be one and done," suggesting that further measures may be necessary. Meanwhile, a senior Ukrainian official welcomed the sanctions, highlighting that Rosneft and Lukoil were among the targets proposed by Kyiv in the past.

The sanctions also extend to several subsidiaries of both companies, blocking their assets in the US and restricting financial transactions involving them. The US Treasury has indicated that it is prepared to take additional actions if necessary to support efforts for a peaceful resolution to the conflict.

In related developments, the EU has announced a ban on Russian liquefied natural gas imports, set to take effect in stages, as part of its ongoing sanctions against Russia. This ban is part of a broader strategy to reduce reliance on Russian fossil fuels and includes new travel restrictions on Russian diplomats and additional listings of vessels linked to Russia's shadow fleet.