On October 22, 2025, the Trump administration announced sweeping new sanctions targeting Russia’s two largest oil companies, Rosneft and Lukoil, along with dozens of their subsidiaries, in a dramatic escalation of U.S. efforts to pressure Moscow to end its war in Ukraine. The move, described by officials as a major policy shift and the first Ukraine-related sanctions of President Trump’s second term, reverberated across global markets and diplomatic circles alike.
"Now is the time to stop the killing and for an immediate ceasefire," declared Treasury Secretary Scott Bessent in a statement echoed by multiple outlets, including Reuters, CNN, and CNBC. "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 in and adhere to these sanctions."
The sanctions come nearly three years after Russian forces invaded Ukraine in February 2022, launching a conflict that has claimed thousands of lives and upended the global energy landscape. The timing was significant: just a day before, the White House confirmed that a long-discussed summit between President Trump and Russian President Vladimir Putin, planned for Budapest, had been called off. According to a senior White House official cited by CNBC, the collapse of those talks played a direct role in the decision to move forward with sanctions.
Financial markets responded instantly. Oil prices jumped about 3% on news of the sanctions, with Brent crude rising $1.83 (2.92%) to $64.42 per barrel and U.S. crude climbing $1.74 (2.97%) to $60.24 per barrel by Wednesday evening, as reported by CNBC. This came after a period of declining oil prices—U.S. crude had fallen 16% and Brent nearly 14% over the course of 2025—fueled by increased production from OPEC+ and trade tensions stemming from Trump’s tariffs.
For Ukraine, the sanctions were greeted as a long-awaited show of strength. "For the first time during the tenure of the 47th President of the United States, Washington has decided to impose full blocking sanctions against Russian energy companies," said Ukraine’s ambassador to the U.S., Olga Stefanishyna, in a statement covered by Nexstar Media and Reuters. "This came after numerous attempts to give Russia the opportunity to begin genuine negotiations to end the war. This decision is fully consistent with Ukraine’s longstanding position, which has repeatedly emphasized that peace is only possible through strength and by exerting pressure on the aggressor using all available international instruments."
President Trump himself described the sanctions as "tremendous" and "very big" when speaking to reporters in the Oval Office, according to NBC News. "I just felt it was time. Waited a long time," he said. "These are tremendous sanctions. These are very big; these 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." Trump also expressed hope that both Putin and Ukrainian President Volodymyr Zelenskyy would be "reasonable" and put aside their hatred to resolve the conflict. Yet, he acknowledged the difficulty of progress, telling reporters, "Every time I speak with Vladimir, I have good conversations, and then they don’t go anywhere. They just don’t go anywhere."
Diplomatic efforts to end the war have repeatedly stumbled. A recent call between Secretary of State Marco Rubio and Russian Foreign Minister Sergey Lavrov reportedly ended in frustration, with Lavrov refusing to agree to an immediate ceasefire—a key demand of Kyiv and its Western allies, as reported by NBC News. The day before the sanctions were announced, Russia launched another round of missile and drone attacks on Ukraine, killing six people, including two children.
The sanctions mark a notable pivot for the Trump administration, which had previously relied more on trade measures, such as imposing additional 25% tariffs on goods from India in retaliation for its purchases of discounted Russian oil. The administration has not imposed similar tariffs on China, another major buyer of Russian crude. Analysts say the new sanctions are a "big step but long overdue," in the words of Edward Fishman, a former U.S. official and senior research scholar at Columbia University, as quoted by Reuters. Fishman and others emphasize, however, that "this can't just be one and done." The real test, they argue, will be whether the U.S. threatens sanctions on any entities doing business with Rosneft and Lukoil, including banks and purchasers in India or China. Without such measures, some experts believe the impact on the Kremlin’s war finances could be blunted.
Michael Carpenter, a former senior director for Europe at the National Security Council, called the move "long overdue and very welcome news. Kudos to Secretary Bessent," according to Nexstar Media. Daniel Fried, a former U.S. ambassador to Poland and a Distinguished Fellow at the Atlantic Council, told Nexstar Media, "There remains a LOT of headroom in energy/oil sanctions. But with this move, the Trump administration crosses the line of additional pressure on Russia, responding to Putin’s brutality and stonewalling."
On Capitol Hill, momentum is building for even tougher action. A Senate bill led by Sen. Lindsey Graham to levy steep sanctions on Russia has gathered dozens of sponsors, with lawmakers reportedly waiting for the green light from the White House to bring the measure up for a vote. Trump has repeatedly said that the decision on whether to move forward with those sanctions rests with him.
Meanwhile, Trump has been vocal in urging allies, particularly India and European nations, to halt purchases of Russian oil and gas. According to CNBC and Reuters, he has argued that such steps would cut off a major source of funding for Moscow’s war effort. New Delhi, one of the largest buyers of Russian crude, has so far resisted American pressure, while a $60 price cap imposed by Western nations after Russia’s initial invasion has shifted much of Russia’s oil trade from Europe toward Asian markets.
The sanctions also follow similar measures by Britain, which last week sanctioned Rosneft and Lukoil. Some analysts and former officials argue that the absence of direct penalties on banks or on Indian and Chinese purchasers limits the immediate effectiveness of the U.S. action. Jeremy Paner, a former Treasury Department sanctions investigator now with Hughes Hubbard & Reed, told Reuters that without targeting these entities, "it will not get Putin’s attention."
Despite the limitations, a senior Ukrainian official called the sanctions "great news," noting that Rosneft and Lukoil had long been proposed as targets by Kyiv. The Russian embassy in Washington and the Russian mission to the United Nations did not immediately respond to requests for comment, according to Reuters.
As the world watches, the true impact of these sanctions will depend on enforcement and whether allies join the U.S. in tightening the economic screws on Moscow. For now, the move marks a clear—and perhaps overdue—shift in Washington’s approach to Russia’s war in Ukraine, signaling that patience with diplomacy alone has run out.
