CaliToday (23/10/2025): The United States has unleashed new sanctions targeting Russia's two largest oil companies, Rosneft and Lukoil, in a dramatic policy shift aimed at forcing Moscow to the negotiating table to end the war in Ukraine.
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| Trump and Putin met in Alaska in August in hopes of ending the war in Ukraine - a second meeting has now been shelved [Getty Images] |
The announcement on Wednesday came just one day after US President Donald Trump confirmed he was indefinitely shelving a planned high-stakes summit with his Russian counterpart, Vladimir Putin, in Budapest.
The move marks the end of a long-running attempt by the Trump administration to cast the US as a neutral mediator and signals the president's growing exasperation with the Kremlin's refusal to engage in serious peace talks over its three-and-a-half-year-long invasion.
"Every time I speak to Vladimir, I have good conversations and then they don't go anywhere," Trump told reporters, explaining his decision to cancel the meeting. "I just felt it was time. We waited a long time."
He called the sanctions package "tremendous," adding that he hoped they could be swiftly withdrawn if Russia agreed to stop the war.
A Major Policy Reversal
While the immediate economic impact on Russia may be blunted by its trade with Asia, the move represents a major reversal for President Trump. He had previously stated he would not impose such sweeping sanctions until European nations completely ceased buying Russian oil.
The Kremlin responded with defiance, stating Russia was "immune" to the sanctions.
For months, Trump has avoided escalating economic pressure in hopes of personally brokering a peace deal, a sharp departure from the full-throated support for Ukraine under his predecessor, Joe Biden. But the president's patience has visibly worn thin.
On Wednesday, Trump openly criticized Putin for "not being serious about making peace" and said he hoped the sanctions would finally force a breakthrough.
US Treasury Secretary Scott Bessent was more direct, pinning the blame on "Putin's refusal to end this senseless war."
Bessent said the targeted oil companies, Rosneft and Lukoil, are the primary funders of the Kremlin's "war machine." Oil and gas are Russia’s biggest exports, and the two firms alone export 3.1 million barrels of oil per day. Rosneft is responsible for nearly half of all Russian oil production, accounting for 6% of global output.
The sanctions are also a significant, if delayed, victory for Ukrainian President Volodymyr Zelensky, who has been calling for such measures for months. He called the sanctions a "good signal" from the US, adding that a ceasefire was possible if other nations applied more pressure on Russia.
A Diplomatic Rollercoaster
The week began with a diplomatic whirlwind. Last Thursday, Trump announced the surprise proposal for the Budapest summit after an unscheduled call from the Russian leader.
The optimism was short-lived. Following a call between US Secretary of State Marco Rubio and his Russian counterpart Sergei Lavrov, the idea was abruptly put on hold. Trump, explaining the reversal, said flatly he didn't want a "wasted meeting."
The diplomatic breakdown was intertwined with Ukraine's military requests. Zelensky had visited the White House just last Friday, seeking to acquire long-range Tomahawk missiles that could strike deep into Russian territory. He came away empty-handed.
Trump later said he refused to give Ukraine the missiles because they were "highly complex" and required a year of intense training. Zelensky, however, appeared to suggest that, like with the sanctions, Trump may change his mind in the future.
Trans-Atlantic Pressure Mounts
The US is not acting alone. The EU Commission President, Ursula Von der Leyen, praised a new sanctions package approved by the EU on Wednesday, which includes a landmark ban on Russian liquefied natural gas (LNG) imports by 2028.
She called the joint measures "a clear signal from both sides of the Atlantic that we will keep up collective pressure on the aggressor." The UK slapped a similar sanctions package on Rosneft and Lukoil last week.
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| Rutte said "sustained pressure" will bring Putin to the negotiating table [EPA] |
NATO Secretary General Mark Rutte was at the White House when the US sanctions were announced and praised the move for "putting more pressure" on Putin. Rutte was expected to discuss a 12-point peace plan, formulated by European allies and Kyiv, which includes a freeze of the current front lines.
Trump has indicated this "freeze" is a key sticking point. While Zelensky is in favor of it, the Kremlin has refused, with spokesperson Dmitry Peskov indicating Russia had not changed its position of wanting Ukrainian troops to leave the parts of the eastern Donbas region Kyiv still controls.
As the diplomatic and economic pressure mounts, the war on the ground continues its brutal toll. Russia unleashed an intense bombardment earlier on Wednesday that killed at least seven people, including children. Strikes on Ukraine's capital, Kyiv, continued overnight, killing at least two more people.