Global oil prices surged more than 3% on October 22, climbing above $60 a barrel to a two-week high following the United States’ announcement of sanctions on Russia’s two largest oil producers, Rosneft PJSC and Lukoil PJSC.
The move marks President Trump’s latest effort to increase economic pressure on the Kremlin amid the ongoing war in Ukraine.
Brent crude futures rose by $2.12, or 3.4%, to $64.71 per barrel by 0614 GMT, while U.S. West Texas Intermediate (WTI) crude futures increased $2.09, or 3.6%, to $60.59 per barrel.
The sanctions, imposed by the Trump administration, specifically target state-owned Rosneft, led by President Vladimir Putin’s close ally Igor Sechin, and privately held Lukoil.
Together, these companies account for nearly half of Russia’s oil exports, approximately 2.2 million barrels per day. Oil and gas revenues from these exports make up about a quarter of the Russian federal budget.
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“Now is the time to stop the killing and for an immediate ceasefire,” Treasury Secretary Scott Bessent said, adding that the companies “fund the Kremlin’s war machine.”
US Sanctions Affect Oil Prices
This announcement came as part of Trump’s broader Ukraine-related sanctions, marking his administration’s first such measures in his second term. The president’s frustration with Putin’s continued aggression in Ukraine has driven this tightening of economic restrictions.
“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,” Bessent said in a statement. “We encourage our allies to join us in and adhere to these sanctions.”
The US Treasury Department also indicated that it is prepared to take further action, urging Moscow to immediately agree to a ceasefire in the conflict that began with Russia’s invasion of Ukraine in February 2022.
The Trump administration imposed an additional 25% tariff on goods from India in retaliation for New Delhi’s continued purchase of discounted Russian oil.
Also Read: India and US Close in on Deal to Drop Tariffs After Trump Threats
Status of Russia-Ukraine Ceasefire Efforts
President Trump played a role in brokering a ceasefire between Israel and Gaza less than a month ago, but progress toward peace between Russia and Ukraine remains stalled amid ongoing hostilities.
Ukrainian President Volodymyr Zelenskyy has reiterated Ukraine’s readiness for an unconditional ceasefire and negotiations toward a lasting peace.
In June 2025, during peace talks in Istanbul, Russia demanded that Ukraine withdraw its forces from Donetsk, Luhansk, Zaporizhzhia, and Kherson regions partially occupied by Russia, as a prerequisite for a 30-day ceasefire.
This proposal was met with rejection from Ukraine, which views these territories as sovereign parts of its nation.
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