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US and EU impose major sanctions on Russia as Trump's peace efforts collapse

(L/R) Ukrainian President Volodymyr Zelenskyy speaks as French President Emmanuel Macron, US President Donald Trump and Finnish President Alexander Stubb listen during a meeting with European leaders in the East Room of the White House in Washington, DC, on Aug. 18, 2025. (AFP Photo)
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(L/R) Ukrainian President Volodymyr Zelenskyy speaks as French President Emmanuel Macron, US President Donald Trump and Finnish President Alexander Stubb listen during a meeting with European leaders in the East Room of the White House in Washington, DC, on Aug. 18, 2025. (AFP Photo)
October 23, 2025 12:42 AM GMT+03:00

The United States and European Union imposed sweeping sanctions on Russia Wednesday, targeting the country's energy sector and shipping operations after President Donald Trump concluded that Vladimir Putin was negotiating in bad faith over ending the war in Ukraine.

The U.S. sanctions hit Rosneft and Lukoil, Russia's two largest oil companies that help finance the Kremlin's war effort. Treasury Secretary Scott Bessent described the action as "one of the largest sanctions that we have done against the Russian Federation."

"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. He added that the department was prepared "to take further action if necessary."

The move represents a dramatic reversal for Trump, who for months had refrained from imposing new penalties on Russia while pursuing what he hoped would be a diplomatic breakthrough. That patience evaporated in less than a week following a phone call with Putin last Thursday.

"President Putin has not come to the table in an honest and forthright manner, as we'd hoped," Bessent told Fox Business ahead of the official announcement.

Traditional Russian wooden nesting dolls, Matryoshka dolls, depicting Russian President Vladimir Putin and US President Donald Trump are displayed for sale at a gift shop on the touristic Arbat street in downtown Moscow on Oct. 21, 2025. (AFP Photo)
Traditional Russian wooden nesting dolls, Matryoshka dolls, depicting Russian President Vladimir Putin and US President Donald Trump are displayed for sale at a gift shop on the touristic Arbat street in downtown Moscow on Oct. 21, 2025. (AFP Photo)

Budapest summit canceled as Trump's frustration mounts

The sanctions came one day after the White House canceled a planned Trump-Putin summit in Budapest, with the president saying he did not want to have a "wasted meeting."

Trump's frustration appears to have mounted since an August meeting with Putin in Alaska, where Bessent said the president "walked away when he realized that things were not moving forward." Despite behind-the-scenes talks since then, Trump grew increasingly disappointed with the pace of negotiations, according to Bessent.

Since returning to office in January, Trump has repeatedly threatened Russia with sanctions while holding out hope for a ceasefire in the conflict, now in its fourth year. Last week, he said he and Putin had agreed to meet within two weeks, only to reverse course days later.

In recent days, Trump also increased pressure on Ukrainian President Volodymyr Zelenskyy, pushing him to cede territory and denying his request for long-range Tomahawk missiles to strike deep into Russia, according to a Kyiv official who spoke to Agence France-Presse.

EU Commission President Ursula von der Leyen speaks during a plenary session at European Parliament in Strasbourg, eastern France, Sept. 10, 2025. (AFP Photo)
EU Commission President Ursula von der Leyen speaks during a plenary session at European Parliament in Strasbourg, eastern France, Sept. 10, 2025. (AFP Photo)

EU accelerates energy ban and targets shadow fleet

The U.S. action coincided with new European Union sanctions announced Wednesday, the bloc's 19th package since Russia's 2022 invasion of Ukraine. Denmark, which holds the EU's rotating presidency, confirmed the measures after Slovakia dropped its opposition.

The EU sanctions accelerate a ban on Russian liquefied natural gas imports to take effect at the start of 2027, a year earlier than previously planned. The package also blacklists more than 100 additional vessels from Russia's "shadow fleet" of aging tankers used to circumvent oil export restrictions.

European measures include new travel restrictions on Russian diplomats suspected of espionage, requiring them to notify authorities in their host countries before traveling abroad.

Oil markets react as diplomatic pressure intensifies

The announcement sent oil prices climbing in after-hours trading, with both WTI and Brent crude gaining more than 1%.

Slovak Prime Minister Robert Fico had blocked the EU package while seeking protections for his country's auto industry from climate regulations, but agreed to lift his objections Wednesday after claiming to secure adequate assurances.

The EU is expected to formally adopt the sanctions package Thursday, ahead of a Brussels summit where Zelenskyy will meet with European leaders.

October 23, 2025 12:42 AM GMT+03:00
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