Although the economic impact on Russia is expected to be limited, the decision marks a major shift in foreign policy for Trump, who had previously said he would not impose sanctions until European countries stopped buying Russian oil. The Kremlin responded by saying that “Russia is immune to sanctions.”
The United States has announced new sanctions targeting Russia’s two largest oil companies in an effort to pressure Moscow to negotiate a peace deal in Ukraine. The announcement came a day after US President Donald Trump said his planned meeting with his Russian counterpart, Vladimir Putin, in Budapest would be postponed indefinitely. “Every time I talk to Vladimir, we have good conversations, but they don’t go anywhere,” Trump said. Although the economic impact on Russia is expected to be limited, the decision marks a major shift in Trump’s foreign policy, who had previously said he would not impose sanctions until European countries stopped buying Russian oil. The Kremlin responded by saying “Russia is immune to sanctions.”
Trump has repeatedly threatened tougher measures against Moscow but has so far avoided them, hoping to broker a peace deal after three and a half years of war. His administration has tried to portray the US as a somewhat neutral mediator between the two warring countries, after years of open support for Ukraine by his predecessor, Joe Biden.
But the US president has become increasingly frustrated with the Kremlin’s unwillingness to move forward with negotiations. The sanctions are also something Ukrainian leader Volodymyr Zelensky has been demanding for months. He called them “a good signal” from the US, adding that a ceasefire would be possible if other countries increased pressure on Russia. On Wednesday, Trump criticized Putin for not being serious about making peace and expressed hope that the sanctions could lead to progress. “I just felt the time had come. We’ve been waiting a long time,” he said. He described the sanctions package as “tremendous,” adding that he would like them lifted as soon as possible if Russia stops the war.
US Treasury Secretary Scott Bessent said the measures were necessary because of Putin’s “refusal to end this senseless war.” According to him, the affected companies – Rosneft and Lukoil – finance the “Kremlin’s war machine.”
Trump and Putin met in Alaska in August, in an attempt to end the war in Ukraine – a second meeting has now been cancelled. Oil and gas are Russia’s biggest exports. The two sanctioned companies export about 3.1 million barrels of oil a day. Rosneft alone produces almost half of Russia’s oil, which accounts for about 6% of global output, according to British government estimates. Moscow’s biggest consumers are China, India and Turkey. Trump has also called on those countries to stop buying Russian oil, as part of efforts to put economic pressure on the Kremlin.
In recent months, Ukraine has attacked Russian refineries and energy infrastructure to damage the country’s economy. Zelensky visited the White House on Friday, demanding that Ukraine be equipped with long-range Tomahawk missiles, capable of striking deep into Russian territory, but left without a deal.
A day earlier, Trump had announced a proposal to meet Putin in Hungary, following an unannounced phone call from the Russian leader. But after a conversation between US Secretary of State Marco Rubio and his Russian counterpart Sergei Lavrov, the idea was shelved, with Trump saying he did not want “a pointless meeting”. He later clarified that he had rejected Ukraine’s request for Tomahawk missiles, saying they were “too complicated” and required a year of intensive training to use. Zelensky hinted that, as with sanctions, Trump could change his mind in the future. Fighting on the ground continued overnight, with shelling of the Ukrainian capital, Kiev, killing at least two people, according to authorities. Earlier on Wednesday, Russia had launched a new wave of attacks that left at least seven dead, including children. NATO Secretary-General Mark Rutte was at the White House when the sanctions were announced and welcomed them as a step to “add pressure” on Putin.
He was expected to discuss a 12-point plan, prepared by European allies and Kiev, that calls for a freeze on current front lines, the return of deported children, and a prisoner exchange. The plan also includes a reconstruction fund for Ukraine, security guarantees, and a clear path to membership in the European Union.
Trump has suggested that the main obstacle in the talks is Moscow’s refusal to stop fighting along the current front line — an idea that Zelensky supports. Russia, however, has rejected the proposal. Kremlin spokesman Dmitry Peskov said Moscow had not changed its position and demanded that Ukrainian troops withdraw from areas of eastern Donbas still under Kiev’s control. (BBC)
