US Imposes Sanctions On Russia's Two Largest Oil Companies, Claims Putin Wasn't 'Honest'

Last Updated:October 23, 2025, 07:43 IST

Trump imposed sanctions on Rosneft and Lukoil for funding Kremlin's war machine, canceling a planned meeting with Vladimir Putin amid ongoing US–Russia tensions over Ukraine.

According to a statement by the Treasury Department, the sanctions have been imposed on Russia’s two largest oil companies, Open Joint Stock Company Rosneft Oil Company (Rosneft) and Lukoil OAO (Lukoil). (IMAGE: REUTERS)

President Donald Trump has slapped major sanctions on Russia’s two largest oil companies after concluding that Vladimir Putin was not being “honest and forthright" in Ukraine talks, the US treasury chief said Wednesday.

The sanctions came a day after a planned Trump-Putin summit in Budapest was shelved, with Washington expressing its disappointment at the lack of progress in ceasefire negotiations with Moscow.

According to a statement by the Treasury Department, the sanctions have been imposed on Russia’s two largest oil companies, Open Joint Stock Company Rosneft Oil Company (Rosneft) and Lukoil OAO (Lukoil).

“The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) is imposing further sanctions as a result of Russia’s lack of serious commitment to a peace process to end the war in Ukraine. Today’s actions increase pressure on Russia’s energy sector and degrade the Kremlin’s ability to raise revenue for its war machine and support its weakened economy," it stated.

It said: “Rosneft is a vertically integrated energy company specializing in the exploration, extraction, production, refining, transport, and sale of petroleum, natural gas, and petroleum products. Lukoil engages in the exploration, production, refining, marketing, and distribution of oil and gas in Russia and internationally."

The department further stated that the US will continue to advocate for a peaceful resolution to the war, and a permanent peace depends entirely on Russia’s willingness to negotiate in good faith.

Later, President Trump told reporters: “Today is a very big day. Look, these are tremendous sanctions. These are very big. Those are against their two big oil companies… We hope that the war will be settled. We just answered having to do with the various forms of missiles and everything else that we’re looking at. But we don’t think that’s going to be necessary."

“We would like to see them just take the line that has been formed over quite a long period of time and go home. Last week they had almost 8,000 soldiers killed. Many Russians and Ukrainians were killed last week. We think it’s ridiculous and we’d like to have it end… I think they both want peace at this point. it’s almost four years… If I were president, it never would have started," he added.

In a post on X, Treasury Secretary Scott Bessent said: “Now is the time to stop the killing and for an immediate ceasefire. 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."

While speaking to Fox Business, he said, “President Putin has not come to the table in an honest and forthright manner, as we’d hoped. There have been behind-the-scenes talks, but I believe that the president is disappointed at where we are in these talks."

Barely a week ago, US President Donald Trump announced that he and Russian President Vladimir Putin would meet in Budapest “within two weeks or so."

However, by Tuesday, the White House confirmed that the meeting would no longer take place. Plans for a preparatory in-person dialogue between US Secretary of State Marco Rubio and Russian Foreign Minister Sergey Lavrov were also scrapped. “I don’t want to have a wasted meeting," Trump told reporters at the White House. “I don’t want to have a waste of time, so I’ll see what happens."

A White House official, speaking to Politico, explained that “Secretary Rubio and Foreign Minister Lavrov had a productive call. Therefore, an additional in-person meeting between the Secretary and Foreign Minister is not necessary, and there are no plans for President Trump to meet with President Putin in the immediate future."

Kremlin spokesperson Dmitry Peskov downplayed the cancellation, telling reporters, “You cannot postpone what has not been scheduled."

The abrupt U-turn has exposed a diplomatic freeze that continues to define US–Russia interactions over Ukraine. It also highlights the persistent gap between Trump’s high-profile peace efforts and the hardened positions on both sides of the conflict.

News world US Imposes Sanctions On Russia's Two Largest Oil Companies, Claims Putin Wasn't 'Honest'

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