Thu, 23 Oct 2025

 

Trump sanctions Russia’s Oil giants while EU Bans Russian LNG to heap pressure on Putin
 
By: Abara Blessing Oluchi
Thu, 23 Oct 2025   ||   Nigeria,
 

Donald Trump, United States President, has imposed sanctions on Russia for the first time since his return to the White House, citing a lack of progress in ceasefire talks to end Moscow’s war on Ukraine. On the same day, European Union leaders approved their 19th Russian sanctions package.

Scott Bessent, US Treasury Secretary, disclosed the sanctions would target Russia’s two largest oil companies, Lukoil and Rosneft, due to Russian President Vladimir Putin’s "refusal to end this senseless war” and Moscow’s "lack of serious commitment” to the peace process.

Bessent explained that, the actions increase pressure on Russia’s energy sector and degrade the Kremlin’s ability to raise revenue for its war machine. The measures, which also sanctioned dozens of Rosneft and Lukoil subsidiaries, block the US assets of the designated firms and prevent Americans from doing business with them.

Trump confirmed he would raise concerns about purchases of Russian oil by Chinese and Indian buyers during his sit-down with President Xi Jinping at the 2025 APEC summit in South Korea next week. The US Treasury Department warned it is prepared to take further action if Russia continues the more-than-three-year war in Ukraine.

The sanctions come as President Trump’s patience with President Putin appears to be waning due to stalled truce negotiations. Speaking to reporters on Wednesday, Trump stated that, he had postponed his planned meeting with Putin in Hungary, stating the timing "just didn’t feel right" because he felt they "weren’t going to get to the place we have to get." He expressed frustration that despite having "good conversations," the talks "just don’t go anywhere."

The newly sanctioned firms are significant to the Kremlin. Rosneft is Russia’s second-largest company in terms of revenue, and Lukoil is Russia’s third-largest and largest non-state enterprise. Both have recently reported steep declines in net income and profit, citing sanctions and increased taxation as Moscow funds its war effort. The United Kingdom announced its own sanctions against both firms last week, saying there was “no place for Russia in global markets.”

Washington’s sanctions coincided with the EU's announcement that it had approved its 19th sanctions package, which includes an EU ban on Russian liquefied natural gas (LNG) imports.

The final package was approved after Slovakia lifted its reservation, following the addition of new clauses to the final communique that addressed Slovak demands regarding high energy prices and the alignment of climate targets with the needs of carmakers and heavy industry.

The new package dictates that short-term LNG contracts with Russia must end after six months, with long-term contracts ending from January 1, 2027. The sanctions also impose new travel restrictions on

Russian diplomats and list 117 more vessels from Moscow’s shadow fleet of clandestine, sanctions-evading vessels, bringing the total to 558. Banks in Kazakhstan and Belarus were also targeted.

Andriy Yermak, Ukrainian President Volodymyr Zelenskyy’s chief of staff, welcomed the package but stated, “we are not stopping," adding that "Package no. 20 is already in the works." He simplified the goal, saying: “The logic is simple – less money in Russia means fewer missiles in Ukraine.”

 

Tag(s):
 
 
Back to News