US Sanctions Major Russian Energy Firms; Trump Hopes They 'Won't Be on for Long'
The Treasury Department on Oct. 22 announced new sanctions against Russia -- including against major energy companies Rosneft and Lukoil -- due to Moscow’s “lack of serious commitment to a peace process to end the war in Ukraine.”
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The designations also target more than 30 Rosneft and Lukoil subsidiaries that either operate oil refineries, are involved in oil or gas production, are involved in the development of oil and gas fields, or are otherwise aiding Russia’s energy sector. The sanctions “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,” Treasury said.
The Office of Foreign Assets Control also issued four general licenses to authorize certain transactions with Rosneft and Lukoil and other Russia-related energy products, including one involving the Caspian pipeline consortium and Tengizchevroil projects and another authorizing transactions involving Lukoil retail service stations located outside of Russia.
“Now is the time to stop the killing and for an immediate ceasefire,” Treasury Secretary Scott Bessent said. “Treasury is prepared to take further action if necessary to support President [Donald] Trump’s effort to end yet another war. We encourage our allies to join us in and adhere to these sanctions.”
The U.K. earlier this month sanctioned Rosneft and Lukoil and issued a general license to authorize certain transactions with those companies (see 2510160021)
Trump has for months threatened to impose sanctions against Russia if Putin didn’t agree to a ceasefire in Ukraine and a peace deal (see 2503070035). The administration had been holding off on new sanctions because some officials believed the measures would undercut any chance of a peace deal for the foreseeable future (see 2508180005).
Speaking to reporters Oct. 22, Trump said he "just felt it was time" to impose sanctions against Russia. "We waited a long time," he said.
Trump said he still believes Putin wants to end the war. "Look, these are tremendous sanctions. These are very big -- those [sanctions] are against their two big oil companies, and we hope that they won't be on for long," he said. "We hope that the war will be settled."
Sen. Lindsey Graham, R-S.C., who has been pushing Russia sanctions legislation for more than six months (see 2510080028), welcomed the announcement. “Sounds good,” he said while walking into the Senate chamber. “The more the better.”
Later on X, Graham wrote, "The best way to end this war is to dismantle Russia’s energy sector, which is virtually the only source of revenue for Putin’s war machine. Keep going after Russian oil companies and the customers that buy their cheap oil and refuse to help Ukraine."
Sen. Richard Blumenthal, D-Conn., another chief backer of the sanctions bill, told Export Compliance Daily that the announcement is “a step in the right direction, but nowhere near far enough. We still need the Graham-Blumenthal sanctions bill that would stop the flow of revenue from buyers of Russian oil and gas to Putin’s war machine. Until we impose those sledgehammer sanctions on India, China, Brazil [and] Hungary, Putin will continue to slaughter with impunity.”