Trump Imposes Long-Awaited Sanctions on Putin’s Russia

The United States has rolled out long-anticipated sanctions against Russia, directly targeting its powerful energy sector. The move marks a decisive shift in President Donald Trump’s approach toward Vladimir Putin’s government after months of restrained diplomacy and stalled progress on Ukraine peace talks.

According to the Treasury Department’s Office of Foreign Assets Control (OFAC), the sanctions are designed to sever critical funding streams for the Kremlin’s war effort and weaken Moscow’s ability to generate revenue.

Treasury Secretary Scott Bessent said the new restrictions were intended “to stop the killing and bring about an immediate ceasefire,” adding that “President Putin’s refusal to end this senseless war leaves us no choice but to sanction Russia’s two largest oil producers that sustain the Kremlin’s war machine.”

Bessent also emphasized that Washington is ready to escalate measures if necessary and called on U.S. allies to adopt similar restrictions.

The sanctions zero in on Rosneft Oil Company and Lukoil OAO, two of Russia’s largest energy giants. Both firms have been designated under Executive Order 14024 for operating in the Russian energy sector. Several of their subsidiaries were also added to the sanctions list.

Rosneft manages a full chain of oil and gas operations — from exploration and production to refining and distribution — while Lukoil oversees global oil and gas supply networks.

Under the new rules, any entity in which either company owns a 50% stake or more is automatically blocked, even if not specifically named. All U.S.-linked property and assets belonging to the designated entities are frozen, and U.S. persons are prohibited from conducting business with them without explicit OFAC authorization.

The Treasury warned that violations of these measures could result in severe civil or criminal penalties. OFAC’s enforcement guidelines make clear that even inadvertent violations may still constitute breaches under strict liability provisions.

Foreign banks and intermediaries were also cautioned: any institution that knowingly facilitates transactions involving Russia’s sanctioned military or energy entities could face restrictions or a complete ban from the U.S. financial system.

“If a foreign financial institution processes payments or services on behalf of sanctioned parties,” Bessent stated, “it risks losing access to U.S. correspondent accounts — a consequence that effectively cuts it off from the American economy.”

Officials added that the sanctions framework is not solely punitive but aims to drive behavioral change. Entities placed on the Specially Designated Nationals (SDN) list can petition OFAC for removal if they meet established criteria.

Additionally, those sanctioned under Executive Order 14024 may face further export controls enforced by the Commerce Department’s Bureau of Industry and Security (BIS).