The US Department of the Treasury announced new sanctions Wednesday against Russia’s energy sector, targeting the country’s two largest oil companies, Rosneft and Lukoil. The move is part of a broader effort to pressure Moscow to end its invasion of Ukraine and engage seriously in peace talks.
Treasury officials said the new sanctions are meant to cut off key sources of revenue for the Kremlin and further isolate Russia from the global financial system.
The sanctions block all property and assets of the designated companies and their subsidiaries that fall under US jurisdiction or are controlled by US entities. This means Americans and US-based businesses are prohibited from conducting transactions with them. Any violations could lead to civil or criminal penalties.
Rosneft and Lukoil dominate Russia’s oil and gas industry. Rosneft operates across every stage of the petroleum business, from drilling and refining to sales, while Lukoil handles production and distribution both inside Russia and internationally. The companies are now formally listed under a 2021 executive order that allows the US to sanction entities operating in Russia’s energy sector.
The Treasury Department also warned that foreign banks or financial institutions that continue doing significant business with Russia’s defense industry or with any newly sanctioned entity could face “secondary sanctions.” Those penalties could restrict their access to US banking systems or limit their ability to maintain US dollar transactions.
Treasury Secretary Scott Bessent said the US continues to push for an immediate ceasefire and a negotiated peace in Ukraine. He added that the United States remains ready to take further action if Russia continues its military aggression.
The announcement follows a series of coordinated efforts between the US and its allies to weaken Russia’s wartime economy by restricting exports, blocking technology transfers, and freezing assets tied to state-run industries.
Officials emphasized that sanctions are not meant as punishment alone, but as leverage to change Russia’s behavior and encourage a diplomatic resolution to the war.
