The White House has announced a sweeping new round of sanctions targeting Rosneft and Lukoil, Russia’s two dominant oil companies, in a move aimed at forcing Moscow to agree to an immediate ceasefire in Ukraine. The decision marks a major turning point in President Donald Trump’s foreign policy, signaling a shift from his earlier reluctance to directly confront the Kremlin.

Trump Calls Off Meeting, Escalates Pressure

President Trump said he canceled a planned meeting with Russian President Vladimir Putin in Budapest, claiming “it just didn’t feel right.” Speaking to reporters, Trump noted, “Every time I speak with Vladimir, the conversations are good — but they don’t go anywhere.” He described the sanctions package as “tremendous,” adding that it could be lifted quickly if Russia ends the fighting.

US Treasury Secretary Scott Bessent said the sanctions were necessary due to “Putin’s refusal to end this senseless war,” emphasizing that the targeted firms directly finance “the Kremlin’s war machine.”

A Sharp Turn in US Foreign Policy

The sanctions represent a significant departure from Trump’s previous stance. For months, he resisted applying pressure on Moscow, arguing that Europe should first halt its own energy imports. With the European Union now accelerating efforts to phase out Russian gas by 2028, Washington appears ready to reassert its global leverage through economic means.

The Kremlin dismissed the measures as ineffective, claiming Russia was “immune to Western sanctions,” and accused Washington of “undermining global energy stability.”

India Caught in the Crossfire

Energy market analysts say Russia’s oil exports to India — once a vital revenue stream — are expected to fall close to zero under the new restrictions. India has become one of Moscow’s largest customers since 2022, purchasing hundreds of thousands of barrels per day at discounted prices. But with insurers and shipping firms wary of breaching US sanctions, New Delhi may be forced to pivot toward alternative suppliers such as Saudi Arabia and the United States.

Coordinated Pressure Across the West

The US action follows similar measures from the United Kingdom and the European Union. Earlier this week, the EU approved a new package banning Russian liquefied natural gas imports by 2028. European Commission President Ursula von der Leyen called it “a clear signal from both sides of the Atlantic that pressure on Russia will continue.”

NATO Secretary General Mark Rutte, who was at the White House during the announcement, praised the decision as a “strong step” that increases the likelihood of renewed negotiations. He said sustained economic pressure is the only way to bring Putin back to the table.

Russia’s Energy Lifeline Under Threat

Oil and gas exports remain the backbone of Russia’s economy, accounting for nearly half of federal revenues. Rosneft, responsible for almost 50% of the nation’s crude output — about 6% of global supply — is central to the Kremlin’s finances. Disruption to its operations could destabilize Russia’s budget and deepen its dependence on China.

While Moscow insists its economy remains resilient, Western coordination has reached new levels. For Trump, the sanctions mark a strategic shift from mediator to enforcer — signaling that without a ceasefire, economic isolation will only intensify.