As per reports, on Wednesday (22 October), US imposed new sanctions targeting Russia’s two largest oil companies, Rosneft and Lukoil, as part of a broader effort to pressure Moscow into negotiating a ceasefire or peace settlement in Ukraine.

• The sanctions were announced by US Treasury Secretary Scott Bessent late on Wednesday (22 October) citing Russian President Vladimir Putin’s refusal to halt military operations in Ukraine, which began in February 2022.
• President Donald Trump reportedly stated that a previously planned meeting with Russian President Vladimir Putin in Budapest would be indefinitely postponed.
• The sanctions package prohibits companies and financial institutions from conducting transactions with Rosneft and Lukoil and sets a compliance deadline of 21 November, with the aim of curbing revenue streams that fund Russia’s war effort.
• President Trump reportedly described the sanctions as a “tremendous package” and indicated they could be lifted if Russia agrees to cease hostilities. Treasury Secretary Bessent emphasised that both the US and its allies are encouraged to adhere strictly to these measures to maximise pressure on Moscow.
• The sanctions had immediate international effects, with global oil prices rising by over three per cent on Thursday (23 October).