US President Donald Trump imposed new sanctions on Russia for the first time in his second term.
He targeted major oil companies Lukoil and Rosneft as frustration grows with President Vladimir Putin over the war in Ukraine.
The move followed the European Union’s 19th sanctions package against Moscow, which banned Russian liquefied natural gas imports.
Britain had also sanctioned Lukoil and Rosneft last week, aligning with the growing Western pressure on Russia.
The US Treasury Department said it stands ready to take further action.
It urged Moscow to agree immediately to a ceasefire in the ongoing war that began in February 2022.
“President Putin refuses to end this senseless war,” Treasury Secretary Scott Bessent said.
“Treasury is sanctioning Russia’s two largest oil companies funding the Kremlin’s war machine,” he added.
Bessent also encouraged allies to adopt and uphold similar sanctions.
Oil prices surged more than $2 a barrel following the US announcement.
Brent crude futures extended gains after settlement, reaching about $64 per barrel.
The sanctions mark a sharp policy shift for Trump, who had previously avoided direct measures against Moscow.
Earlier this year, Trump imposed 25% tariffs on Indian goods in response to India’s purchase of discounted Russian oil.
The US has not imposed similar tariffs on China, another key buyer of Russian oil.
Western nations’ $60 oil price cap has redirected Russian energy exports from Europe to Asia in recent years.
Trump told reporters he cancelled a planned summit in Hungary with Putin, saying it was not the right time.
He expressed hope that the sanctions would remain temporary, citing risks to the dollar’s global dominance.
Analysts welcomed the sanctions but warned against stopping there.
“This can’t just be one and done,” said Edward Fishman of Columbia University.
He questioned whether Washington would also target companies doing business with Lukoil and Rosneft.
Former Treasury sanctions investigator Jeremy Paner called the move significant but incomplete.
He said excluding banks and Indian or Chinese oil buyers “will not get Putin’s attention.”
A senior Ukrainian official praised the sanctions as “great news.”
He said Ukraine had long urged Washington to target Russia’s top energy firms.
The Treasury also sanctioned dozens of Rosneft and Lukoil subsidiaries.
The measures block US assets of those entities and prohibit Americans from conducting business with them.
The Russian embassy in Washington and Russia’s UN mission in New York did not respond to requests for comment.
