BREAKING: U.S. sanctions Russia's top two oil companies

The Trump administration said Wednesday that the move is a response to Moscow refusing to engage in peace talks to end the war in Ukraine.

The U.S. Department of the Treasury announced new sanctions on Wednesday targeting Russia’s two largest oil companies, Rosneft and Lukoil, citing Moscow’s unwillingness to engage in meaningful peace negotiations to end the war in Ukraine.

According to the Treasury’s Office of Foreign Assets Control (OFAC), the measures are meant to weaken Russia’s energy sector and limit its ability to fund the war. Treasury Secretary Scott Bessent urged Russia to agree to an immediate ceasefire, saying the United States would continue to use its financial authorities to promote peace and could impose additional sanctions if necessary.

The sanctions also extend to numerous subsidiaries involved in oil and gas exploration, production, and refining across Russia. Any entities owned 50 percent or more by the two companies are also targeted by the new sanctions

OFAC also warned that foreign financial institutions facilitating significant transactions for Russia’s military-industrial base—or for the newly sanctioned entities—could face secondary sanctions. Treasury officials emphasized in a press release that the goal of these measures is not permanent punishment but to encourage a change in behavior and create conditions for a negotiated peace.

This story will be updated.