US Sanctions Russia’s Top Oil Firms, Trump Claims Modi Assured Oil Cutbacks
The United States has imposed significant sanctions on Russia’s two largest oil companies, marking President Donald Trump’s first Ukraine-related sanctions against Moscow during his second term. The move targets Rosneft and Lukoil as Washington escalates pressure to end the Ukraine war.
Key Takeaways
- US sanctions target Rosneft and Lukoil, Russia’s largest oil companies
- Trump claims PM Modi assured him India will “cut way back” on Russian oil
- India currently faces 50% US tariffs, partly for Russian oil purchases
- Planned Trump-Putin meeting cancelled amid sanctions announcement
Sanctions Target Kremlin’s War Funding
The Treasury Department announced sanctions against Russian oil companies on Wednesday, citing “Russia’s lack of serious commitment to a peace process to end the war in Ukraine.” Treasury Secretary Scott Bessent stated: “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.”
The sanctions package also includes a ban on Russian natural gas imports, representing the 19th round of sanctions against Moscow since the conflict began.
Trump’s Claims About Indian Oil Purchases
The sanctions announcement comes amid repeated claims by Trump that Prime Minister Narendra Modi assured him India would reduce Russian oil imports. During Diwali celebrations at the White House, Trump revealed: “I spoke to Prime Minister Modi… and he’s not gonna buy much oil from Russia. He wants to see that war end as much as I do.”
Trump added that India has “cut it way back and they’re continuing to cut it way back” on Russian oil purchases. Indian officials have not yet responded to these claims.
Currently, India faces 50% tariffs from the US, with half imposed specifically as punishment for buying oil from Russia.
Affected Russian Companies
The sanctions target Open Joint Stock Company Rosneft Oil Company (Rosneft) and Lukoil OAO (Lukoil), both facing similar restrictions from the United Kingdom last week. According to the US Treasury, Rosneft specializes in “exploration, extraction, production, refining, transport, and sale of petroleum” while Lukoil operates in oil and gas “in Russia and internationally.”
Trump-Putin Meeting Cancelled
Days after announcing a potential meeting with Vladimir Putin in Budapest, the White House stated Trump had “no plans” to meet his Russian counterpart “in the immediate future.” Trump explained the cancellation: “We cancelled the meeting with President Putin. It just didn’t feel right to me.”
However, Secretary of State Marco Rubio indicated the US remains open to dialogue with Russia despite the new sanctions.
