The U.S. Department of the Treasury’s Office of Foreign Assets Control announced sanctions against major Russian oil companies as it urged the Russian government to implement an immediate cease fire in Ukraine.
Treasury Secretary Scott Bessent said the sanctions would increase pressure on the Russian energy sector and degrade Moscow’s ability to raise money for the war in Ukraine. Citing a lack of serious commitment to a peace process, the Treasury Department said it will continue to use its authority to support peace.
“Now is the time to stop the killing and for an immediate ceasefire,” Bessent said. “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 actions target two of Russia’s largest oil companies, Open Join Stock Company Rosneft Oil Company and Lukoil OAO. Both are being designated as companies which the U.S. or anyone within the U.S. cannot do business with. Violations of the sanctions may result in civil or criminal penalties. In addition, any foreign financial institution that conducts or facilitates significant transactions with the Russian oil companies also run the risk of being sanctioned.
The Treasury Department said the sanctions also applied to the subsidiaries of Rosneft and Lukoil.