In a significant move, the Trump administration has sanctioned not only Russia’s state-owned oil giant Rosneft but also its largest private producer, Lukoil. This action goes further than the European Union, which has so far exempted Lukoil from its sanctions regime.
The EU’s reluctance to sanction Lukoil has been largely due to carve-outs for Hungary and Slovakia, which are heavily dependent on Russian oil delivered via pipelines. The new US sanctions create a clear divergence, putting increased pressure on global companies that deal with Lukoil.
Treasury Secretary Scott Bessent announced the sanctions, citing “President Putin’s refusal to end this senseless war.” The goal is to cut off funding for the “Kremlin’s war machine.” The UK had already sanctioned both firms last week.
This economic crackdown was paired with a diplomatic freeze. President Trump confirmed he had cancelled a planned summit with Vladimir Putin, a sign of growing frustration in Washington with Moscow’s unwillingness to negotiate.
The sanctions were praised by Ukraine and European allies. European Commission President Ursula von der Leyen said she had spoken with Bessent and welcomed the “clear signal” of “collective pressure,” even as the EU’s own 19th sanctions package is still being finalized.