U.S. President Donald Trump has imposed sanctions for the first time on two major Russian oil companies, Lukoil and Rosneft. The sanctions were introduced as a firm response to Russia’s continued refusal to end its war with Ukraine.

The U.S. Department of the Treasury stated that it stands ready to take further action and urged Russia to immediately agree to a ceasefire in the ongoing conflict that began in February 2022.

“In light of President Vladimir Putin’s refusal to bring an end to this senseless war, the Treasury Department is imposing sanctions on two of Russia’s largest oil companies, which have been financing the Kremlin’s war machine,” said U.S. Treasury Secretary Scott Bessent, as quoted by Reuters on Thursday (October 23, 2025).

However, Trump expressed hope that the sanctions against Russian oil companies would not need to remain in place for long. He added that he would prefer to lift the sanctions swiftly, warning that maintaining them for an extended period could pose risks to the dominance of the U.S. dollar in global financial transactions.

Trump’s decision to impose sanctions on Russian oil companies came shortly after the European Union (EU), on the same day, approved its 19th package of sanctions against Russia over the war in Ukraine, which included a ban on imports of Russian liquefied natural gas (LNG).

This move by Trump also followed the United Kingdom’s decision the previous week to impose sanctions on Rosneft and Lukoil.

The sanctions mark a significant shift in Trump’s foreign policy stance, as he had previously never imposed sanctions on Russia. In the past, Trump preferred to apply trade policy measures as a means of pressuring Moscow rather than implementing direct sanctions.