Trump Targets Russia’s Oil Giants: New Sanctions Intensify Pressure on Putin Amid Ukraine War

 

Date: October 22, 2025

U.S. President Donald Trump has imposed significant sanctions on Russia’s two largest oil companies, Rosneft and Lukoil, marking one of the strongest U.S. economic measures against Russian businesses since the start of the war in Ukraine.

The sanctions freeze U.S.-held assets of these companies and ban American business dealings with them. They also threaten secondary sanctions on foreign financial institutions that continue to facilitate Russian oil trade.

Impact on Companies

• Rosneft:

  • Led by Igor Sechin, a close ally of President Vladimir Putin.

  • Produced 184 million metric tons (3.7 million barrels/day) in 2024, about 3.3% of global oil output.

  • Refined 82.6 million tons domestically.

  • International deals include supplying 500,000 barrels/day to India’s Reliance and holding a 49% stake in India’s Vadinar refinery.

• Lukoil:

  • Russia’s second-largest oil producer, contributing ~2% to global oil output.

  • Produced 80.4 million tons in 2024, with refining volume of 54.3 million tons.

  • Holds 75% stake in Iraq’s West Qurna 2 oilfield, producing over 480,000 barrels/day.

Global Market Response

The sanctions caused a surge in oil prices, with Brent crude rising 5.7% to $66.13 per barrel, boosting energy stocks like Shell and BP and pushing the FTSE 100 to a record high.

Importers like China and India have reportedly halted or reduced Russian oil imports, affecting companies such as PetroChina and Reliance Industries.

Reactions

• Vladimir Putin called the sanctions “unfriendly” and warned they could hurt global oil markets, potentially raising fuel prices in the U.S., but stated Russia would not bow to U.S. pressure.

• Ukrainian President Volodymyr Zelenskyy welcomed the sanctions, hoping they would pressure Russia to negotiate.

• The European Union joined in with new economic sanctions, including bans on Russian liquefied natural gas and restrictions on over 100 vessels in Russia’s shadow tanker fleet.

These developments mark a significant escalation in international efforts to pressure Russia to end its war in Ukraine, highlighting the central role of economic sanctions in global strategy.