MOSCOW (dpa-AFX) - In response to Russia's lack of serious commitment to a peace process to end the war in Ukraine, the United States has imposed sanctions on two major Russian oil companies.
The U.S. Department of the Treasury's Office of Foreign Assets Control said it is targeting Russia's two largest oil companies - Open Joint Stock Company Rosneft Oil Company and Lukoil OAO - to 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.
'Now is the time to stop the killing and for an immediate ceasefire,' said Secretary of the Treasury Scott Bessent. '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.'
The Treasury said the United States 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.
US President Donald Trump had scheduled a meeting with Russian President Vladimir Putin in Budapest this week to discuss ways to agree on a ceasefire in Russia's war against Ukraine, but canceled it Tuesday saying, 'Every time I speak to Vladimir, I have good conversations and then they don't go anywhere.' 'I just felt it was time. We waited a long time,' he said regarding the latest round of US sanctions targeting Russian oil.
Wednesday'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.
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.
Additionally, OFAC is designating a number of Russia-based Rosneft and Lukoil subsidiaries. 'All entities owned 50 percent or more, directly or indirectly, by Rosneft and Lukoil are blocked pursuant to E.O. 14024, even if not designated by OFAC,' the Treasury said in a press release.
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