KYIV — There were cheers in Ukraine and the EU when the Trump administration
sanctioned Russia’s two biggest oil companies Wednesday.
The U.S. sanctions “are a clear signal that prolonging the war and spreading
terror come at a cost,” Ukrainian President Volodymyr Zelenskyy said in a post
on X on Thursday. “This is a fair and absolutely deserved step. It is precisely
pressure on Russia that will be effective for achieving peace, and sanctions are
one of its key components.”
He also called it “a strong and much-needed message.”
The U.S. slapped sanctions on Russia’s two biggest oil companies, Rosneft and
Lukoil, and their subsidiaries in an attempt to pressure Russia to take
ceasefire negotiations more seriously.
“I just felt it was time,” Trump said less than a week after he announced
that he’d be meeting with Russian President Vladimir Putin in Hungary and
declared that the Russian leader was ready for peace.
This was the first time Trump has slapped any sanctions on Russia. The European
Union’s 19th package of sanctions against Russia will likely be approved
Thursday after Slovakia dropped its opposition late Wednesday. Across the bloc,
there was also support for the U.S. move.
U.S. “Treasury decision to sanction major Russian oil companies in the face of
Russia’s lack of commitment to the peace process. With the imminent adoption of
the EU’s 19th package, this is a clear signal from both sides of the Atlantic
that we will keep up collective pressure on the aggressor,” European Commission
President Ursula von der Leyen said in a post on X Wednesday night.
“So it happened. … The beauty of this decision is its comprehensiveness. The
complete oil infrastructure is subject to sanctions as it should be. I think the
effect will be big and quick,” the Ukrainian president’s sanctions envoy,
Vladyslav Vlasiuk, said in a post on Facebook on Thursday.
The sanctions target not only Lukoil and Rosneft but also dozens of their
subsidiaries.
“Those subsidiaries cover all key links in the oil and gas business —
exploration, production, transportation, processing, trade, and service,”
Vlasiuk said.
Rosneft alone accounts for approximately 40 percent of Russia’s oil production
and 14 percent of its gas production, and remains the primary contributor to the
federal budget, having paid 6.1 trillion rubles in taxes in 2024. The company
also has a fleet of at least 39 vessels.
“What adds spice to this particular solution is that Lukoil, Rosneft, and others
were preparing cooperation proposals for the U.S. — on the eve of Anchorage
[summit], Reuters reported this, and we also knew about it from other sources,”
Vlasiuk said.
“U.S. sanctions open Pandora’s box. We are working to have more.”