Trump sanctions Russian oil as West raises pressure on Putin to end war in Ukraine

US President Donald Trump and Russian President Vladimir Putin arrive for a press conference in Anchorage, Alaska, on August 15.

Russia’s Ministry of Foreign Affairs is “open to continued contacts” with the US State Department on a potential meeting between US President Donald Trump and Russian President Vladimir Putin, according to spokesperson Maria Zakharova.

She added that the foreign ministry expects the Trump administration to continue to share its “considerations and motives” regarding the “steps being taken” toward a peace deal in Ukraine — what she described as a “Ukrainian settlement.”

Trump yesterday announced the cancellation of an anticipated meeting between him and Putin in Budapest.

The US president suggested it could be a “waste of time” for now. However, his administration appears to have left the door open for the possibility of a further meeting, despite last night slapping sanctions on two major Russian oil companies.

A pedestrian walks past the headquarters of Lukoil, one of Russia's major oil companies, in Moscow on Thursday.

The United States has sanctioned Russia’s two largest oil companies, which account for more than half of Russia’s crude oil exports.

Any financial institution that helps facilitate transactions for these companies will now think again about doing so, says Elina Ribakova, a senior fellow at the Peterson Institute for International Economics, a think tank based in Washington, DC.

If a bank is caught doing business with sanctioned companies, “they will lose access to US markets, the US dollar and US payments systems,” Ribakova told CNN. “So effectively they will cease to exist as a bank.”

Although Russia may try to disguise the fact that oil is coming from one of the sanctioned companies, it will still have to cut the price of its exports to compensate buyers for the risk of doing business with them.

Ribakova said that India – a major buyer of Russian oil since 2022 – will now be asking of Russia: “If I can get cheap oil from Saudi Arabia and the UAE, why do I need to bother with you? You’re toxic. It’s hard to make transactions with you.” To stop buyers looking elsewhere, Russia will have to sell at a discount, she explained.

The need for that discount could erode, however, if the US shows it is not “serious” about enforcing its sanctions.

“If they don’t do any analysis and enforcement in the next two months, the discount will become very small again. It’s like if I tell you to pay 60% tax, but then don’t check your tax records. At some point, you won’t pay that tax anymore,” she said.

The Trump administration can celebrate an early sign of success as its sanctions on Russia’s two largest oil companies, announced late on Wednesday, have already prompted moves by Indian refiners to slash imports of Russian oil, according to Reuters.

Reliance Industries, the top Indian buyer of Russian crude, controlled by billionaire Mukesh Ambani, now plans to reduce or stop imports of Russian oil to comply with the sanctions, Reuters said, citing industry sources.

Meanwhile, India’s state refiners, including Indian Oil and Bharat Petroleum Corp, are working to ensure no supply will be coming directly from Rosneft and Lukoil, the freshly sanctioned Russian oil companies, Reuters reported.

Why this is significant: India is a big importer of Russian oil and one of relatively few remaining buyers globally. According to RBC Capital Markets, Rosneft and Lukoil account for around half of Russia’s oil exports.

Although the latest US sanctions could dent Russia’s hugely important oil revenues, they may also increase competition for non-Russian oil as India enters the fray, while Moscow’s barrels are increasingly shut out from the global market.

That is the risk signaled by Helima Croft at RBC Capital Markets, who wrote in a note Thursday: “Prior to this point, US policy had been designed to avoid a serious Russian supply disruption.”

And such a disruption could raise global oil prices.

Ukrainian President Volodymyr Zelensky attends the European Union leaders' summit in Brussels, Belgium on Thursday.

Addressing the European Council today, Ukrainian President Volodymyr Zelensky urged European leaders to provide Ukraine with long-range weaponry.

Zelensky — who has so far met little success in his efforts to persuade the Trump administration to send Tomahawks — said that these missiles are also available in Europe and he is in talks with some countries on this issue.

He continued that Russian President Vladimir Putin understands that long-range weaponry, such as the Tomahawks, have the power to change the course of the war in Ukraine.

As winter approaches: Russia, Zelensky also warned, wants to weaponize cold weather once again during the winter months and is ramping up attacks on Ukraine’s energy infrastructure.

Sanctions package: He thanked European leaders for its fresh sanctions package on Moscow, stressing their importance. “Sanctions limit Russia’s war machine, but they also put pressure on the people who influence politics: corporations, Putin’s inner circle, and Russian oligarchs, and the entire state system.”

Frozen assets: Regarding the EU plan to use frozen Russian assets to aid Ukraine, Zelensky insisted the proposal was entirely legal and fair as he called on European leaders to make a decision on this as soon as possible.

Three men have been arrested in the United Kingdom on suspicion of assisting Russia’s intelligence service, London’s Metropolitan Police said Thursday.

The men, aged 44, 45 and 48, were arrested in London by detectives from counter-terrorism policing and detained under the National Security Act.

“Anyone who might be contacted by and tempted into carrying out criminal activity on behalf of a foreign state here in the UK should think again. This kind of activity will be investigated and anyone found to be involved can expect to be prosecuted and there are potentially very serious consequences for those who are convicted,” he said.

Last month, British police arrested three others on suspicion of spying for Russia – a 41-year-old man, a 46-year-old man and a 35-year-old woman.

CNN has previously reported on how Russia-linked operatives have recruited low-level criminals in the UK to stage acts of sabotage, such as an arson attack on a Ukrainian-owned business in London last year. Such attacks have occurred across Europe, in what experts said was part of Moscow’s “shadow” campaign to cultivate a sense of chaos and show there are costs for backing Ukraine.

Read more here.

The Kremlin said on Thursday that NATO drills involving nuclear weapons are “destabilizing” and would lead to increased tensions and risks.

“The very existence of joint nuclear missions, through which Alliance countries regularly hone their skills in the collective use of American nuclear weapons weapons deployed in Europe against Russian territory of Russia’s allies, is deeply destabilizing,” Russia’s Foreign Ministry spokesperson Maria Zakharova said at a news conference, according to state media RIA Novosti.

NATO held its major annual nuclear exercise this month, mostly in the North Sea, far from Russia and Ukraine.

Zakharova stressed that Moscow does not intend to ignore the exercises and would take them into account when considering its military planning.

Her warning comes a day after Russia staged its own nuclear drills. On Wednesday, Russia’s strategic nuclear forces carried out a readiness test, supervised by President Vladimir Putin.

Oil pump jacks are seen outside Almetyevsk, Russia, on July 14.

A member of Ukraine’s Parliament said the news of US President Donald Trump’s sanctions on Russia gives Ukrainians reason to be optimistic, but she said the action alone will not be enough.

Inna Sovsun told CNN’s Lynda Kinkade that she hopes the US-imposed sanctions on two Russian oil companies begins a change that sees Trump offer further support to Ukraine, but she said more must be done.

The politician noted that Russia took a hit with major losses across the European market, but she said the country still makes billions through oil sales to China and India. “The sanctions that have been introduced send a strong political message finally; they will not themselves undermine Russia’s ability to continue this war,” Sovsun said.

She emphasized Ukraine’s need for weapons, referring to President Volodymyr Zelensky’s recent request to Trump for access to US-made Tomahawks, which was denied. The parliamentarian said the conversation around Tomahawks and other armaments must continue.

“Western partners do realize that Ukraine needs the weapons, that Ukraine is fighting alone against the second biggest army in the world,” she said. “I don’t believe there is a single army in the world apart from the US, apparently, that would be able to withstand fighting against such a big might.”

Sovsun added that Western allies often deny Ukraine weaponry — which they later supply. She said the wait costs Ukrainians lives.

The Trump administration has sanctioned Russia’s two largest oil companies – the first time it has imposed direct costs on Moscow over its full-scale invasion of Ukraine.

The move wraps a week in which US President Donald Trump suggested he would provide Ukraine with new weapons, then backtracked, then said he would hold another summit with Russian President Vladimir Putin, before backtracking again.

Here’s how we got here:

• October 16: Trump had been loudly musing about whether to provide Ukraine with Tomahawks – powerful, long-range missiles that could pummel targets deep in Russia. A day before Ukrainian President Volodymyr Zelensky was due to visit the White House – hoping to secure the new weapons – Putin initiated a phone call with Trump. The US president then announced plans to meet Putin for a summit in Budapest.

• October 17: Zelensky made his third visit to the White House this year. It was neither as bad as his first, nor as rosy as his second. Trump made clear to Zelensky that he would not receive Tomahawk missiles. Sources told CNN the meeting was tense and “uncomfortable,” with Trump insisting that Ukraine make territorial concessions to Russia to end the war. Zelensky said no. After the meeting, Trump called on Russia and Ukraine to end the war along the current battle lines.

• October 18: European leaders, unnerved by what appeared to be Trump once more shifting towards Putin’s position on the war, vowed their “unwavering commitment” to Ukraine. Preparations for the Trump-Putin summit in Budapest continued.

• Monday: US Secretary of State Marco Rubio spoke with Russian Foreign Minister Sergey Lavrov in preparation for the Budapest summit. Lavrov said he told Rubio that Russia’s position “has not altered” since the Alaska summit: rather than a ceasefire, Russia wants a peace deal that would address the “root causes” of the war.

• Tuesday: CNN reported that Trump’s hopes for a quick meeting with Putin had stalled out. One source said Rubio and Lavrov had divergent expectations about how to end Russia’s war during their phone call. Later, the White House said there were “no plans” for Trump and Putin to meet “in the immediate future.” Asked why, Trump said he didn’t want the meeting to be “a waste of time.”

• Wednesday: Despite the White House shelving the Budapest summit, Moscow said preparations were ongoing. But the Kremlin’s hopes were dashed when the Trump administration announced it was sanctioning Rosneft and Lukoil, Russia’s two biggest oil companies. US Treasury Secretary Scott Bessent said the sanctions aimed to “degrade” Putin’s war chest, and that the decision was taken because of “Putin’s refusal to end this senseless war.”

• Today: Trump’s decision is a major coup for Ukraine and its European allies, who have spent months pleading with Washington to turn the screw on Russia’s economy. Zelensky hailed Trump’s decision, which came on the same day that the European Union adopted its 19th sanctions package against Russia. The Kremlin has so far, however, tried to shrug off the impact of the new measures.

A Saab JAS-39E Gripen participates in the Royal International Air Tattoo at RAF Fairford in Gloucestershire, England, on July 19, 2025.

New NATO member Sweden has said it is willing to sell Ukraine up to 150 of its most advanced fighter jets, the first offer from a member of the alliance to supply significant numbers of jets to Kyiv, which is seeking to upgrade its small and ageing air force.

The deal signed on Wednesday by Volodymyr Zelensky and Swedish Prime Minister Ulf Kristersson is a letter of understanding, meaning exact terms, costs and delivery dates for 100 to 150 Saab Gripen-E jets are yet to be determined.

But both leaders said it has the potential to be a game changer, not only for Ukraine – which desperately needs more air combat capabilities in its fight against Russia – but for NATO and European security overall.

“We are opening an entirely new and truly meaningful chapter in our relations — relations between Ukraine and Sweden, and more broadly, overall security relations in Europe,” Zelensky said on X.

“This will strengthen both Ukraine, Sweden and Europe,” Kristersson said in a statement.

Sweden joined NATO in 2024 along with its Nordic neighbor Finland. Their accession to the alliance – which ended longstanding policies of non-alignment – was spurred by Russia’s invasion of Ukraine.

Read the full story.

A Bavaria Petrol gas station is in Munich, Bavaria, Germany, on Tuesday.

Oil prices rose sharply Thursday as traders worried about a squeeze on global supply after the US imposed sanctions on two gigantic Russian oil companies.

Brent oil, the global benchmark, jumped 5% to $65.8 a barrel. WTI, the US benchmark, rose slightly more to $61.6 a barrel.

It marked the biggest one-day gain in oil since mid-June, when oil prices soared more than 7% during the Israel-Iran dispute.

But oil had since fallen below $58 to their lowest level since May, as investors grew fearful that an economic slowdown and escalating trade tensions could sap demand, as people grow more cautious about travel and purchases that require shipping. Combined with recent reports of a major oil supply glut, oil had been on a major downswing.

It’s unclear whether the recent run-up in oil will be a blip or longer-lasting.

Oil prices remain sharply lower this year, but the sanctions renewed traders’ concerns that the Russia-Ukraine war could disrupt oil supplies.

US gas prices, which had been nearing a nationwide average of $3 a gallon, according to an AAA’s national survey, have reversed course and rose to $3.07 a gallon Thursday. Still, that’s down from $3.16 a year ago.

Spokesperson Maria Zakharova insisted that the new sanctions would not "pose any particular problems" for Russia.

Russia’s Foreign Ministry criticized the fresh US sanctions on Russia as “entirely counterproductive,” including regarding negotiations to end the war in Ukraine.

Spokesperson Maria Zakharova insisted however that the sanctions would not “pose any particular problems” for Russia.

Zakharova also reacted similarly to EU countries on Thursday formally adopting a 19th package of sanctions against Russia, including a ban on imports of Russian liquified natural gas.

“The sanctions they’re imposing against Russia are primarily working against the EU,” she added.

Dmitry Medvedev, deputy chairman of Russia’s security council and a former president, compared the Trump administration’s actions to an act of war against Russia. “The United States is our adversary, and their talkative ‘peacemaker’ has now fully embarked on the warpath against Russia,” Medvedev, who has positioned himself as a hawkish hardliner, wrote on Telegram.

The director of the Eurasia Democracy Initiative, an international non-profit, said that the sanctions imposed on Russia by US President Donald Trump are unlikely to make President Vladimir Putin come to the negotiating table any time soon.

Speaking to CNN’s Rosemary Church, Peter Zalmayev called the sanctions “a good thing,” before adding, “But will they force Putin to end this war, sit down and negotiate? Probably not in the near future.”

While the sanctions have been broadly welcomed in Europe, some have questioned why it has taken the US president so long to action them. Zalmayev said the delay was likely down to what he called Trump’s “persistent belief” that he can negotiate with Putin. But Zalmayev said Trump’s good faith had worn thin and the Russian president was starting to hurt him politically. “Donald Trump has had enough with Vladimir Putin,” he said.

The analyst noted that Trump’s decision to activate sanctions is an attempt to pressure Putin to cooperate with peace discussions without aggravating the war further.

“Donald Trump wants to try other tools of pressure before he delivers the tomahawks because the tomahawks are a clear escalation in this war,” he said, referring to Trump’s decision to deny Ukraine access to the US-made long-range missiles Ukrainian President Volodymyr Zelensky tried to obtain.

Zalmayev said Russia’s objective is to create a “puppet state” of Ukraine by destroying the nation’s ability to run its own foreign policy and affairs. “That’s why Vladimir Putin is not interested in a ceasefire, he’s not interested in genuine peace, he’s not interested in any additional territory…it’s about controlling Ukraine and annihilating Ukraine as an independent nation,” he said.

Volodymyr Zelensky talks to the press as he arrives for a European Council meeting in Brussels, on Thursday.

Ukrainian President Volodymyr Zelensky has welcomed US sanctions on Russia’s two largest oil companies as “very important,” following a significant change of approach from the Trump administration toward Moscow.

In comments made to reporters in Brussels Thursday morning ahead of an EU leaders’ summit, Zelensky described the move as crucial as he reiterated that more pressure must be applied on Moscow to bring it to the negotiating table.

The US sanctions announced Wednesday targeted Russian oil companies Rosneft and Lukoil and came as the US government called on Moscow to agree to an immediate ceasefire.

President Donald Trump had for weeks signaled he could impose penalties against Russia for its continuation of the Ukraine war, but failed to take major punitive measures until now.

EU countries on Thursday formally adopted a 19th package of sanctions against Russia for its war against Ukraine that includes a ban on Russian liquefied natural gas imports.

EU countries approved the package on Wednesday after Slovakia dropped its block.