The U.S. Treasury and the European Union (E.U.) have both announced sanctions on Russia, increasing the economic and political pressure on Moscow in hopes that it’ll push President Vladimir Putin toward establishing a cease-fire with Ukraine.
“I just felt it was time. We waited a long time. I thought that we’d go long before the Middle East,” U.S. President Donald Trump told reporters in the Oval Office on Wednesday, when asked about his Administration’s decision to elevate sanctions against Russia.
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The U.S. levies target two major Russian oil companies, Open Joint Stock Company Rosneft Oil Co. and Lukoil OAO.
The “actions increase pressure on Russia’s energy sector and degrade the Kremlin’s ability to raise revenue for its war machine and support its weakened economy,” read a statement from the Treasury Department. “The United States will continue to advocate for a peaceful resolution to the war, and a permanent peace depends entirely on Russia’s willingness to negotiate in good faith.”
And the elevated sanctions could be the first of many, as Treasury Secretary Scott Bessent has said his Department is “prepared to take further action if necessary to support President Trump’s effort to end yet another war.” Urging Russia to terminate the conflict in Ukraine, Bessent added: “Now is the time to stop the killing and for an immediate cease-fire.”
On Thursday morning, the E.U. announced its own package of sanctions against Russia, the 19th set of measures of its kind that will target a number of sectors.
“It is becoming increasingly difficult for Putin to finance his war. Every Euro we deny Russia is one it cannot spend on war,” said Kaja Kallas, the E.U. High Representative for Foreign Affairs and Security Policy.
Similar to the U.S., the E.U. has warned that further sanctions against Russia could follow, if a cease-fire is not reached.
In a sign that Trump’s relationship with Putin is becoming strained, the U.S. President has canceled a meeting he was set to have with his Russian counterpart. “It didn’t feel right to me. It didn’t feel like we were going to get to the place we have to get, so I canceled it, but we’ll do it in the future,” Trump said in the Oval Office on Wednesday.
In August, Trump and Putin shared their first in-person meeting since 2019, joining forces for a high-stakes summit in Alaska. But the two failed to reach a deal during the sit-down, which ended earlier than expected.
Read More: Trump Says No Deal Reached With Putin
Meanwhile, Russia has responded furiously to the new sanctions.
“The decisions taken are an act of war against Russia. And now Trump is fully in solidarity with crazy Europe,” said former President Dmitry Medvedev via Telegram on Thursday.
Here’s what to know about the latest measures placed upon Russia:
What sanctions has the U.S. imposed on Russia?
The measures taken by the Trump Administration against Moscow focus specifically on Russian oil companies, in particular the largest two in the country, Open Joint Stock Company Rosneft Oil Company (Rosneft) and Lukoil OAO.
The Treasury is also imposing sanctions on over 30 subsidiaries of Rosneft and Lukoil, all of which are majority owned by the Russian oil giants, which Bessent says are “funding the Kremlin’s war machine.”
Trump called the sanctions “tremendous” in the Oval Office on Wednesday, during a meeting with NATO Secretary-General Mark Rutte. “We hope that they won’t be on for long. We hope that the war will be settled,” said Trump. “We would like to see them [Russia] just take the line that has been formed over a long period of time and go home.”
Trump did not clarify if this was in reference to a border proposal within Ukraine or a figurative line in terms of a cease-fire agreement.
The sanctions mean that all property in the U.S. owned by the companies, their subsidiaries, or persons within the companies are “blocked” and must be reported to the Treasury’s Office of Foreign Assets Control (OFAC).
Any violation of the sanctions from U.S. or foreign nationals, as well as institutions that engage in certain activities with the sanctioned companies may receive civil or criminal penalties.
Also at risk of sanctions by OFAC are “foreign financial institutions that conduct or facilitate significant transactions or provide any service involving Russia’s military-industrial base.”
Ukraine’s President Volodymyr Zelensky has welcomed the U.S. sanctions, referring to them as “a clear signal that prolonging the war and spreading terror comes at a cost.”
Zelensky went on to thank Trump and his Administration for their efforts. “It is precisely pressure on Russia that will be effective for achieving peace, and sanctions are one of its key components,” he said.
The U.S. sanctions are considered “to be exclusively counterproductive,” said Russia’s Foreign Ministry Spokesperson Maria Zakharova on Thursday, who insisted that Russia has a “strong immunity” to Western sanctions.
What sanctions has the European Union imposed on Russia?
Sanctions imposed on Thursday by the European Council cover a much broader set of sectors and issues regarding the war in Ukraine. There are measures against the energy, military, and financial sectors of Russia, as well as specific targets against those believed to be involved in the abduction of Ukrainian children.
The E.U. is banning imports of Russian Liquified Natural Gas (LNQ), starting January 2027 for long-term contracts and within six months for short-term contracts. This builds on top of the pre-existing sanctions on Russian companies Rosneft and Gazprom.
There are also sanctions included in the package against two Chinese refineries and an oil trading firm that the E.U. says are “significant buyers of Russian crude oil.”
An additional 117 vessels owned by Russian oil companies or those carrying their products will be “subject to a port access ban and a ban on the provision of a broad range of services related to maritime transport, bringing the total number of designated vessels to 557.”
The E.U. is also widening its levies on five additional Russian banks involved in the trade of a crypto currency A7A5. As of now, eight banks and oil traders from Tajikistan, Kyrgyzstan, the UAE, and Hong Kong that circumvent E.U. sanctions are subject to a transaction ban.
Restrictions are also being imposed on maintaining economic relationships with entities active in nine Russian special economic zones. “These zones are central to Russia’s industrial and technological capacity, hosting enterprises engaged in the production or development of goods contributing to the Russian war effort,” according to the E.U.
Arms producers in the UAE and China are being targeted among others for their supply of military goods to Russia.
The E.U. has agreed to expand its existing export ban, to include electronic components, rangefinders, and additional chemicals that are used in the manufacturing of military goods and systems.
The European Council has also announced, as part of the sanctions, further measures against those believed to be involved in the abduction of Ukrainian children. 11 individuals are being sanctioned, and a new criteria for identifying others potentially involved has been introduced.
Russia has reportedly referred to the expansion of European sanctions against Moscow as “largely exhausted.”
European Commission President Ursula von der Leyen said the measures were “keeping the pressure high” on Russia. “For the first time we are hitting Russia’s gas sector—the heart of its war economy. We will not relent until the people of Ukraine have a just and lasting peace,” said von der Leyen.
Zelensky met with President of the European Council, António Costa, on Thursday, and gave his thanks to Europe for what he called “a very important decision” regarding the latest sanctions.
“We must not only defend ourselves but, together with all of Europe and the United States, put pressure on Putin to stop this war,” said Zelensky, adding that unified action “is what will help compel Russia to end its aggression.”
The Ukrainian President is currently in Brussels to discuss the possibility of using Russian central bank’s frozen assets to fund Ukraine’s defense efforts, which he described as “fully legal and fair” and based on the model of reparations.
Some in Europe have been sceptical of the legality of the proposal, including Belgian Prime Minister Bart De Wever. “If you make such a decision, it seems obvious to me that you need to know the legal basis and ensure that it is solid. Until then, I will not budge,” he told reporters on Thursday, after previously rejecting the idea.