The United States (US) and European Union (EU) have escalated economic pressure on Russia, targeting its largest oil firms in a move aimed at weakening the Kremlin’s war funding.

The US Treasury’s Office of Foreign Assets Control announced new sanctions on Rosneft and Lukoil, companies responsible for nearly half of Russia’s oil exports and central to Moscow’s budget.

Secretary of the Treasury Scott Bessent said: “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. Treasury is prepared to take further action if necessary to support President Trump’s effort to end yet another war. We encourage our allies to join us in and adhere to these sanctions.”

Foreign financial institutions now face possible secondary sanctions if they facilitate significant dealings with the targeted companies. In response, major Chinese oil firms have reportedly suspended Russian oil imports, while Indian refiners plan sharp import cuts to comply.

Simultaneously, the EU approved another sanctions package, banning Russian liquefied natural gas, tightening restrictions on Russian and third-country banks and trade, and blacklisting 117 tankers. Additional controls target dual-use exports and criminalise dealings with Kremlin-linked stablecoins and payment systems.

Brent crude rose 7.28% over three days to $65.47 per barrel as the new sanctions reverberated through global energy markets.