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In a sharp turn in U.S. foreign policy, the President announced new Trump sanctions on Russia’s two largest oil companies. Rosneft and Lukoil were sanctioned after talks with President Vladimir Putin failed to produce a breakthrough toward ending the war in Ukraine.

The move marks Trump’s strongest economic response to Moscow since the conflict began over three years ago.

Read more on the Treasury Department’s sanctions announcement

Trump Sanctions: A Major Policy Shift

Speaking at the White House on October 22, Trump said the Trump Sanctions were intended to increase pressure on Russia to come to the negotiating table.

“These are tremendous sanctions — these are very big because they're against their two big oil companies,” Trump said. “I hope they won't last long, and that President Putin will become reasonable.”

The sanctions target Russia’s vital oil sector, freezing assets and restricting international transactions with Rosneft, Lukoil, and several subsidiaries. The move follows similar action taken by Britain last week. Analysts say the sanctions could severely limit Russia’s oil exports — the main source of funding for its ongoing military operations in Ukraine.

Trump’s decision is a significant policy reversal. Until now, he had avoided sanctioning Russia directly over the war, focusing instead on tariffs and trade measures. Earlier this year, Trump imposed a 25% tariff on Indian goods after India increased purchases of discounted Russian oil.

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NATO Leaders Back Trump’s Decision

Trump announced the sanctions alongside NATO Secretary General Mark Rutte, who was visiting Washington to discuss Ukraine’s defense needs.

“You have to put pressure,” Rutte said. “The sanctions are about changing the calculus for Putin and getting him to the negotiating table.”

Treasury Secretary Scott Bessent echoed this sentiment in an interview with Fox Business, saying:

“President Putin has not come to the table in an honest and forthright manner, as we’d hoped. These sanctions are meant to send a clear message that time is running out.”

Trump and Putin last met in Anchorage, Alaska, in August, during a high-profile summit that produced little progress. A follow-up meeting planned for Budapest was canceled by Trump, who said he didn’t want to “have a waste of time.”

Analysts Say Trump Sanctions Could Be “Long Overdue”

Experts are calling the sanctions a necessary but overdue step. Edward Fishman, a former U.S. official and now a senior research scholar at Columbia University, said the real question is whether the administration will go further.

“This can’t just be one and done,” Fishman said. “The real impact will depend on whether the U.S. also targets anyone doing business with Rosneft and Lukoil.”

The sanctions immediately sent global oil prices higher, reflecting market fears over restricted supply. Economists warn the move could have ripple effects across Europe, which still depends on Russian energy imports.

Learn more about Rosneft’s global operations

What’s Next for U.S.–Russia Relations

Putin continues to reject calls for a ceasefire, insisting that Ukraine must cede territory in any peace agreement. Trump, meanwhile, has emphasized that his goal is to force Moscow to “think rationally” and return to diplomacy.

With tensions mounting, the Trump Sanctions are being viewed as both a test of U.S. leverage and a signal to allies that Washington is reasserting its leadership in ending the war.