US sanctions Russia’s two largest oil companies and calls on Moscow to agree to immediate ceasefire

By Jennifer Hansler, Kit Maher, Kaitlan Collins, CNN

(CNN) — The Trump administration on Wednesday imposed sanctions on Russia’s two largest oil companies as it called on Moscow to agree to an immediate ceasefire in the war with Ukraine.

President Donald Trump had for weeks signaled he could impose penalties against Russia for its continuation of the war but had failed to take major punitive measures until Wednesday. The announcement came as Trump said he had “canceled” an anticipated meeting with Putin because he “didn’t feel like we were going to get to the place we have to get.”

In remarks in the Oval Office, Trump explained he “felt it was time” for the sanctions, noting he “waited a long time” to impose them. Still, the US president said he hopes “they won’t be on for long” because the war will end.

Treasury Secretary Scott Bessent said in a statement Wednesday that it was “the time to stop the killing and for an immediate ceasefire.”

“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,” he said.

Bessent added: “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.”

The sanctions hit Rosneft and Lukoil and almost three dozen of their subsidiaries. The United Kingdom targeted the two oil companies last week, and the European Union agreed to another package of sanctions on Wednesday.

Ukraine had been calling for increased pressure on Moscow as the war has raged on. Diplomatic efforts to end the war have stalled and Russia has rejected the notion of freezing the conflict for negotiations – something that Ukraine and Europe have said they support.

Trump said last week that he intended to meet with Russian President Vladimir Putin in Budapest. However, Trump said on Wednesday he had “canceled” that anticipated summit, telling reporters, “It just didn’t feel right to me,” although he said they would meet in the future.

CNN reported earlier this week that Trump’s hopes for a quick meeting with Putin had stalled out, with an administration official saying Tuesday there were “no plans” for a summit between the two “in the immediate future.”

The impact of the new US sanctions will be greatly determined by how they are implemented and whether the administration pushes ahead with secondary sanctions, one expert told CNN.

“So far what’s come out is these primary sanctions on Rosneft and Lukoil, but the key then will be if there’s a threat of secondary sanctions on banks, oil refineries and traders in third countries who are dealing with Rosneft and Lukoil,” said Eddie Fishman, a senior fellow at the Atlantic Council.

Earlier Wednesday, Bessent had previewed the sanctions as “one of the largest,” noting Trump’s disappointment with Putin and the state of talks to end the war in Ukraine, following a summit in Alaska more than two months ago.

“President Putin has not come to the table in an honest, forthright manner as we hoped. There were talks in Alaska; President Trump walked away when he realized that things were not moving forward,” Bessent told Fox Business. “There have been behind-the-scenes talks, but I believe that the president is disappointed at … where we are in these talks.”

“These are sanctions, not secondary tariffs,” Bessent added. “These are going to be substantial and powerful, and we are urging our European and G7 allies plus Canada and Australia to come along with us.”

This headline and story have been updated with additional developments.

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CNN’s Kylie Atwood and Donald Judd contributed to this report.