Donald Trump’s first Russia sanctions hit oil giants Rosneft, Lukoil, China untouched, for now

President Donald Trump on Wednesday slapped Ukraine-related sanctions on Russia’s top oil giants, Lukoil and Rosneft, marking his administration’s sharpest shift yet in confronting the Kremlin over its ongoing war in Ukraine.

The move, announced by the U.S. Treasury Department, signals escalating frustration in Washington as the war drags into its fourth year. Trump, who had previously avoided direct sanctions on Russia’s energy sector, is now targeting the lifeblood of the Kremlin’s wartime economy.

“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 Secretary Scott Bessent said. He urged allies to adopt similar measures.

This marks the first time Trump has used sanctions against Russia over Ukraine since beginning his second term. Until now, his administration had favored trade levers, including a 25% tariff on Indian goods in retaliation for India’s purchases of discounted Russian crude.

China, another top buyer of Russian oil, has so far been spared from similar penalties.

Wednesday’s sanctions mirror action by the United Kingdom, which blacklisted Rosneft and Lukoil just days earlier.

The Western-imposed $60 per barrel price cap on Russian oil has already diverted much of Moscow’s oil exports from Europe to Asian markets. U.S. officials indicated further sanctions could follow if Russia continues to reject calls for a ceasefire.

The Russian embassy in Washington and its UN mission in New York did not immediately respond to requests for comment.