U.S. sanctions Russia’s energy giants over war in Ukraine

The U.S. Treasury Department imposed sanctions on Russia’s two largest oil companies, Rosneft and Lukoil, aiming to pressure Moscow over the war in Ukraine, according to the Office of Foreign Assets Control (OFAC).

On Wednesday, the Treasury said the designations target Russia’s energy sector and block property and interests of the listed entities in the United States or under U.S. jurisdiction.

Treasury Secretary Scott Bessent said the action seeks “an immediate ceasefire,” adding that Rosneft and Lukoil “fund the Kremlin’s war machine” and that the department is prepared to take further steps in support of President Trump’s efforts to end the war.

Rosneft and Lukoil were designated for operating in Russia’s energy sector. Treasury also designated a number of Russia-based subsidiaries and said any entity owned 50% or more by the listed companies is blocked.

Ukrainian President Volodymyr Zelenskyy called the sanctions “a clear signal that prolonging the war and spreading terror come at a cost,” and thanked the United States for a “well-targeted decision.”

Separately on Thursday, the European Union adopted a 19th sanctions package with new individual listings and sectoral measures hitting energy, finance, and Russia’s military-industrial complex.

The package tightens restrictions on Russian oil operations, expands enforcement against the “shadow fleet,” introduces a phased ban on Russian LNG imports, and adds financial curbs including actions against banks and crypto activities linked to sanctions evasion, according to the Council.

Russian Foreign Ministry spokeswoman Maria Zakharova said following “the playbook of its predecessor” would endanger global economic stability. President Vladimir Putin, quoted by RIA, said the new sanctions would not affect Russia’s economy.