US Treasury Secretary Scott Bessent said the new sanctions were needed due to “Putin’s refusal to end this senseless war”.
Speaking alongside Rutte in the Oval Office on Wednesday, Trump said he hoped that the sanctions would help force a breakthrough.
The two Russian oil firms export 3.1 million barrels of oil per day.
Rosneft is responsible for nearly half of all Russian oil production, which makes up 6% of the global output, according to estimates from the UK government.
Trump has also urged these countries to halt purchases of Russian oil in a bid to put economic pressure on the Kremlin.
US Treasury Secretary Scott Bessent stated that “Putin’s refusal to end this senseless war” was the reason for the new sanctions. According to him, the Kremlin’s “war machine” is financed by these oil firms.
His office will “take further action if necessary to support President Trump’s effort to end yet another war,” Bessent said in a statement, adding that “now is the time to stop the killing and for an immediate ceasefire.”.
During his Wednesday speech in the Oval Office with Rutte, Trump expressed his hope that the sanctions would help compel a breakthrough.
He described the sanctions as “tremendous” and expressed his hope that they could be quickly lifted in the event that Russia agrees to halt the conflict. Additionally, he criticized Putin for not being sincere about pursuing peace.
“Every time I talk to Vladimir, we have enjoyable conversations that end there. “They simply don’t move,” he remarked.
Additionally, Rutte commended the action, claiming it was “putting more pressure” on Putin.
Rutte aid said, “You have to put pressure, and that is just what he did today,”.
A week prior, the UK imposed a similar set of sanctions on Lukoil and Rosneft.
During the announcement, UK Chancellor Rachel Reeves stated, “We will take whatever actions are necessary to destroy the capability of the Russian government to continue this illegal war in Ukraine. There is no place for Russian oil on global markets.”.
Russia’s embassy in London responded to the UK action last week by stating that targeting its nation’s largest energy companies would disrupt global fuel supplies and raise prices globally.
The sanctions would have “a detrimental impact on the energy security” of developing and underdeveloped nations, it had also stated, adding that “pressure only complicates peaceful dialogue and leads to further escalation.”.
Three and a half million barrels of oil are exported daily by the two Russian oil companies. According to estimates from the UK government, Rosneft is in charge of almost half of all Russian oil production, which accounts for 6% of the world’s total output.
Bessent accused Putin of being dishonest and told Fox News earlier Wednesday that Trump had been dissatisfied with the talks’ progress.
Bessent informed the broadcaster, “We had hoped that President Putin would approach the table in an honest and forthright manner, but he hasn’t done so.”.
Russia’s largest exports are gas and oil, and its top clients are Turkey, China, and India. Additionally, Trump has called on these nations to stop buying Russian oil in an effort to exert economic pressure on the Kremlin.
Prior to his unsuccessful peace agreement with Putin in August in Alaska, Trump reportedly contemplated imposing sanctions on Rosneft and Lukoil.
Major Russian energy companies Gazprom Neft and Surgutneftegas were subject to direct sanctions from the US and the UK earlier this year.
A bill that would impose severe sanctions on Russia and target nations that buy oil from the Kremlin has been pending a vote by US lawmakers, including Republicans, awaiting approval from the White House.
Rutte was scheduled to address a 12-point plan developed by Kyiv and European NATO allies at the White House. The plan called for freezing the current front lines, allowing deported children to return, and exchanging prisoners between the two warring nations.
A war recovery fund for Ukraine, security routes, a clear path for Ukraine to join the EU, more military assistance for Kyiv, and economic pressure on Moscow are all part of the plan.
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Trump stated earlier this week that he did not want a “wasted meeting” with Putin in Budapest, implying that the primary issue is Moscow’s insistence on continuing the conflict along the current front line.
