After the sanctions were announced, oil prices rose sharply – Brent futures, the global benchmark for oil, rose by 3.3% on Thursday, October 23. Photo Collage Anna Nakonechna
The new US sanctions against the Russian energy sector are the most extensive since the invasion of Ukraine and during the presidency of Donald Trump. What do they restrict, besides the activities of Rosneft and Lukoil, and how do they affect not only Russia, but also its allies? The main points from the WSJ material
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Washington has imposed its toughest sanctions on Russia's energy sector since the start of its full-scale invasion of Ukraine. US President Donald Trump announced blocking restrictions on Russia's two largest oil companies, Rosneft and Lukoil, as well as nearly three dozen of their subsidiaries.
These measures now cut companies off from the dollar system and international financial markets. The market reaction was immediate, with Brent crude futures jumping 3.3% to their highest in weeks.
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Increased pressure on Russia
Trump's decision marked the first time he has completely blocked Russian energy giants during his second term. The sanctions are part of a strategy to pressure Moscow to achieve a ceasefire in Ukraine, according to U.S. Treasury Secretary Scott Bessant.
“It is time to stop the killings and achieve an immediate ceasefire,” he said, stressing that the Finance Ministry was ready to increase pressure if Russia did not negotiate.
Trump himself explained that he was acting after a long period of waiting for concessions from Russia: “I just felt the time had come. We've been waiting a long time.”
US Secretary of State Marco Rubio, who was visiting the Middle East, stressed that Washington is “still open to talks with Moscow” but cannot wait indefinitely.
“The president has repeatedly said in recent months that sooner or later he will have to act if there is no progress in peace talks. The day has come when he has decided to act,” Rubio said. The decision came after Trump met with NATO Secretary General Mark Rutte in Washington.
New US sanctions not only restrict the activities of Rosneft and Lukoil, but also warn foreign companies about the risks of secondary sanctions.
As former State Department official Eddie Fishman explained to the WSJ, “a Chinese bank, an oil trader from the UAE, or an Indian refinery – if they do business with these Russian companies, they could also be punished by US sanctions.” Washington is extending responsibility to the global chain of Russian oil trade to minimize Russia’s energy profits.
The White House is still open to talks with Russia, says US Secretary of State Marco Rubio. Photo Getty Images
The EU supports sanctions
The European Union is synchronizing its steps with the US. In July 2025, the EU banned financial transactions with an Indian refinery that was one of Rosneft's main customers, and the adopted 19th package of sanctions provides for a complete ban on transactions with the company. The United Kingdom also joined the sanctions, introducing restrictions against Lukoil and Rosneft, but retained exceptions for certain foreign investments, in particular in the Caspian Shah Deniz field.
As part of the 19th sanctions package, the EU has prepared new restrictions on the import of Russian liquefied gas, which will come into force in 2026. Brussels is also expanding the list of vessels of the “shadow fleet” that helps Moscow circumvent sanctions: another 117 tankers transporting Russian oil will be added to the “black list”.
Sanctions will target 12 companies from Hong Kong, China, and several Indian firms that help support the Russian economy.
The oil depot of the Russian energy corporation Lukoil in Niedersachsen, Brussels, Belgium. Photo Getty Images
The European sanctions will also affect Russia's Chinese partners. Diplomats say the new restrictions include measures against two Chinese refineries and a trader that facilitated the trade in Russian oil.
The EU also plans to expand sanctions against Russian banks and restrict the movement of Russian diplomats within the bloc. EU leaders are also preparing to approve a plan to channel $200 billion from frozen Russian assets to Ukraine to finance the armament of the Ukrainian army over two years.
The new sanctions front opened by the US, EU, and UK means a shift to a policy of maximum pressure on Russia.
“Russia’s military machine is taking a major hit,” Atlantic Council expert Kim Donovan told the WSJ. “They already have trouble funding their government and military. This will further limit their ability to continue the war in Ukraine.”
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