Trump Imposes Major Sanctions on Russia's Largest Oil Companies After Failed Ukraine Peace Talks

US Treasury Secretary announced major sanctions against Rosneft and Lukoil in a statement.

President Donald Trump has imposed significant sanctions on Russia's two largest oil companies after determining that Vladimir Putin was not being "honest and forthright" in Ukraine negotiations, according to the US treasury chief on Wednesday. These sanctions were implemented a day after a scheduled Trump-Putin summit in Budapest was canceled, with Washington expressing disappointment over the lack of progress in ceasefire talks with Moscow.

"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," US Treasury Secretary Scott Bessent stated when announcing the sanctions against Rosneft and Lukoil.

He cautioned that Treasury was ready "to take further action if necessary" to support President Donald Trump's efforts to end the conflict.

Speaking with Fox Business before the official announcement, Bessent described the move as "one of the largest sanctions that we have done against the Russian Federation."

Trump had postponed new sanctions for months, indicating he hoped to convince Russian President Putin to make peace despite growing frustration with the Kremlin leader.

However, the 79-year-old Republican's patience apparently expired within six days after his telephone conversation with Putin last Thursday.

"President Putin has not come to the table in an honest and forthright manner, as we'd hoped," Bessent told Fox Business.

Bessent mentioned that when the two leaders met in Alaska in August, "President Trump walked away when he realized that things were not moving forward."

"There have been behind-the-scenes talks, but I believe that the president is disappointed at where we are in these talks," he added.

The European Union announced on Wednesday that it was also imposing new sanctions on Russia.

These include prohibiting Russian liquefied natural gas imports by 2027, blacklisting oil tankers used by Moscow, and implementing travel restrictions on Russian diplomats.

Since returning to office in January, Trump has repeatedly threatened sanctions against Russia without implementing them as he pursues an elusive end to Russia's three-and-a-half-year war.

Trump had expressed hope for a ceasefire deal last week after speaking with Putin, stating that the two leaders had agreed to meet in Budapest within two weeks.

Continuing a pattern of alternating between Moscow and Kyiv, the US president simultaneously increased pressure on Ukrainian President Volodymyr Zelensky.

Trump urged Zelensky to surrender territory, according to a Kyiv official who spoke to AFP, and rejected his request for long-range Tomahawk missiles to strike deep into Russia.

However, Trump changed course again on Tuesday, stating that he did not want to have a "wasted meeting," ending the immediate prospect of a Putin summit.

News of the sanctions drove oil prices higher in after-hours trading, with the benchmark WTI and Brent both gaining more than one percent.