The US Treasury imposes sanctions on the Russian oil sector

The United States has now embarked on a new course with Russia since the Trump administration has taken office. The rapprochement that the US President Donald Trump advocated for during his electoral campaign and the first couple months of his term seem to be witnessing significant bumps along the way.

The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) blacklisted Russia’s 2 largest oil producers, imposing notable and detrimental sanctions. The targeted companies are Open Joint Stock Company Rosneft Oil Company (Rosneft) and Lukoil OAO (Lukoil). These are not the first measures that the US has taken against Moscow’s invasion of Ukraine, but they are so regarding the Trumps administration. The department claimed that “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. Treasury is prepared to take further action if necessary to support President Trump’s effort to end yet another war. We encourage our allies to join us in and adhere to these sanctions.”

Washington’s move comes as the planned Trump-Putin summit in Bucharest, Hungary was effectively canceled, as Trump signaled his frustration with the stalled negotiations. The sanctions, which Trump hoped to be temporary, are viewed as a US attempt to pressure Moscow to leniency as well as contribute to constructive negotiations and an end to the Ukraine war.