‘Time to Stop the Killing’: Treasury Dept. Signals Ramping Up of Sanctions on Russia
White House frustration is growing over Vladimir Putin’s refusal to negotiate a genuine cease-fire in Ukraine, and the Treasury Department is signaling a sharper turn in pressure by targeting the energy sector. Officials say new sanctions will focus on the companies that fund Russia’s war machine and choke off revenue streams that sustain the Kremlin’s conflict. This marks a clear pivot from diplomacy to economic leverage as impatience with stalled talks builds.
President Trump had announced plans to meet with Putin in Budapest to discuss a cease-fire, and for a time suggested the two sides should stop at current battle lines and withdraw. That meeting was called off when U.S. officials judged Russia was not negotiating in good faith, based in part on public comments from Russian officials. The cancelation left policymakers looking for other tools to change Moscow’s calculus.
On Wednesday, Treasury Secretary Scott Bessent told reporters there would be “a substantial pickup in Russia sanctions” and Senate Republicans signaled readiness to back legislation that would increase pressure on Moscow. Lawmakers have drafted bills that would levy steep penalties on those who bankroll the conflict, and are awaiting the administration’s go-ahead to move forward. The political alignment in Congress on this issue reflects frustration with stalled diplomacy and a wish to impose tangible costs on Putin’s regime.
“We are going to, either announce after the close this afternoon or first thing tomorrow morning, a substantial pickup in Russia sanctions,” Bessent told reporters at the White House.
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A Senate bill led by Sen. Lindsey Graham (R-S.C.) to levy steep sanctions on Russia has dozens of sponsors, and lawmakers have said they are waiting for the go-ahead from the White House to bring the bill up for a vote.
Later the Treasury secretary posted publicly, reiterating a blunt call for an immediate halt to the fighting and pointing at specific corporate targets. The administration framed the move as necessary to freeze the funding that allows Russia to sustain offensive operations and to push Moscow back toward talks. Officials also urged allies to adopt similar measures to increase the cumulative effect of the squeeze.
Now is the time to stop the killing and for an immediate ceasefire. Given President Putin’s refusal to end this senseless war, Treasury is sanctioning Russia’s two largest oil companies that fund the Kremlin’s war machine. Treasury is prepared to take further action if necessary to support President Trump’s effort to end yet another war. We encourage our allies to join us in and adhere to these sanctions.
The Treasury release states the action targets Russia’s two largest oil firms, Open Joint Stock Company Rosneft Oil Company (Rosneft) and Lukoil OAO (Lukoil), designating them and several subsidiaries. Rosneft was described as a vertically integrated energy company involved in exploration, extraction, production, refining, transport, and sale of petroleum and natural gas. The move is intended to degrade the Kremlin’s ability to raise revenue and to compound other financial and trade restrictions already in place.
Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) is imposing further sanctions as a result of Russia’s lack of serious commitment to a peace process to end the war in Ukraine. Today’s 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. 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. Treasury will continue to use its authorities in support of a peace process.
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Today’s action targets Russia’s two largest oil companies, Open Joint Stock Company Rosneft Oil Company (Rosneft) and Lukoil OAO (Lukoil), which are now designated. Rosneft is a vertically integrated energy company specializing in the exploration, extraction, production, refining, transport, and sale of petroleum, natural gas, and petroleum products.
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Additionally, OFAC is designating a number of Russia-based Rosneft and Lukoil subsidiaries, a list of which is available in Annex 1 below.
Republican lawmakers who want tougher measures see sanctions as the right lever to compel movement at the negotiating table without committing U.S. forces to the battlefield. They argue that biting financial penalties on energy giants will ripple through Russia’s economy and force elites to pressure the Kremlin for a way out. For an administration that campaigned on ending overseas conflicts, sanctions are framed as a pragmatic instrument to secure results while minimizing American exposure.
This remains a developing situation and officials say further steps may follow depending on Russia’s response and the broader diplomatic picture. In the meantime, the policy mix of legislative readiness and executive action signals a new phase: when talks stall, economic tools will do the heavy lifting to try to bring about an end to the fighting.
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