US sanctions Russian oil giants Rosneft and Lukoil; Oil prices jump
Oil prices jumped by nearly 3% after the US announced sanctions against Russian energy giants Rosneft and Lukoil – the first such move since President Donald Trump took office.
The measure was announced by the US Treasury Department's Office of Foreign Assets Control (OFAC). The department justified the decision by citing "Russia's palpable lack of willingness to engage in the peace process."
"Now is the time to stop these crimes and immediately declare a ceasefire... The Treasury Department is imposing sanctions against the two largest Russian oil companies, which are financing the Kremlin's war machine," Mr Bessent said.
The sanctions list includes 28 Rosneft subsidiaries and six belonging to Lukoil. All of their assets located in the US have been frozen.
All legal entities "owned 50% or more by a sanctioned person or persons" have also been blocked.
According to the Treasury Department's press release, violating these measures entails "civil or criminal penalties for US and foreign persons."
The US Treasury Department also announced that it is prepared to adopt new measures to "support Trump's efforts" to end the war. Brent crude futures climbed 3% in early trading.
In a separate development, Mr Bessent added that President Trump is disappointed with the current state of negotiations regarding the war in Ukraine.
Donald Trump also confirmed that he has cancelled the planned meeting in Budapest with Russian President Vladimir Putin, which was scheduled for this week. The American leader stated at a White House briefing that he made this decision believing that the discussions would not have yielded the desired results.
Translation by Iurie Tataru
