US hits Russian oil industry with heavy sanctions | DW News

DW NewsAbout 5 min readOct 23, 2025Watch original
THE SUMMARYAI-generated

Key Concepts

  • Sanctions on Russian Oil Companies: Imposition of economic penalties on Rosneft and Lukoil, Russia's largest oil firms.
  • Russia's War in Ukraine: The ongoing conflict, with Russia's oil revenue seen as a primary funding source.
  • Trump-Putin Summit: A planned meeting between the US President and Russian President that was called off.
  • Ceasefire Negotiations: Diplomatic efforts to end the conflict, with Washington expressing disappointment at a lack of progress.
  • Center of Gravity: The critical element that, if disrupted, would significantly weaken an adversary. In this context, Russia's energy sector.
  • Secondary Sanctions: Sanctions imposed on entities that do business with sanctioned countries or individuals.
  • Iranian-made Shahed Drones: Unmanned aerial vehicles used by Russia in attacks on Ukraine.
  • Freezing the Conflict: A proposal to halt fighting along current front lines, suggested by President Trump.

New US Sanctions on Russia's Oil Sector

US President Donald Trump announced "tremendous sanctions" on Russia's two largest oil companies, Rosneft and Lukoil. These measures were implemented following the cancellation of a planned Trump-Putin summit in Budapest, attributed to Washington's disappointment over a lack of progress in ceasefire negotiations with Moscow. The Russian oil industry is identified as a crucial revenue source for Moscow and a primary means of funding Russia's war in Ukraine.

President Trump stated in the Oval Office that he believes Vladimir Putin desires an end to the war and expressed hope that the sanctions would be temporary. He described the sanctions as "very big" due to their targeting of major oil companies, emphasizing the hope for a swift resolution to the conflict.

Increased Pressure on Vladimir Putin and Diplomatic Context

The theme of increasing pressure on Russian President Vladimir Putin was central to a meeting between NATO Secretary General Mark Rutte and US President Donald Trump at the White House. This meeting occurred shortly after the US Treasury Department announced the new sanctions, citing a "lack of serious commitment" from the Russian president to end the war. The sanctions also followed the cancellation of a planned meeting between Russian Foreign Minister Sergey Lavrov and his US counterpart, Marco Rubio.

Additionally, the sanctions were announced shortly after a visit by Ukrainian President Volodymyr Zelensky, who requested Tomahawk cruise missiles for strikes deep inside Russian territory, a request the US President had not yet committed to fulfilling.

Expert Analysis of Sanctions and Russian Strategy

Ivana Stratner, a research fellow focusing on Russian military strategy at the Foundation for Defense of Democracies, expressed that the sanctions were expected. She noted President Trump's prolonged attempts to engage Putin diplomatically and suggested that Trump has now decided to impose costly sanctions targeting Russia's "center of gravity," which is its energy sector, the primary source of funding for its war.

Stratner emphasized the importance of imposing secondary sanctions to bolster these economic measures against Putin. She argued that Putin is not negotiating in good faith and is only willing to stop the war if he is "stopped." Beyond sanctions, she believes it is crucial to put Russia on the defensive by allowing Ukraine to strike deep inside Russia, thereby forcing Putin back to the negotiation table. Stratner warned that Putin will likely attempt to escalate, citing recent brutal attacks on Ukraine and potential testing of nuclear weapons, characterizing these as psychological tactics that the West should not fall for.

Effectiveness and Future of Sanctions

Regarding the effectiveness of the sanctions, Stratner acknowledged that the EU has sanctioned the Russian energy sector multiple times, but Russia has redirected its oil and gas sales to other countries. She questioned how much these US sanctions will truly weaken Russia's economy and its ability to finance the war, or if the US will repeatedly introduce new sanctions.

Stratner explained that sanctions work incrementally, with the offer of negotiations aimed at bringing Putin back to the table. She believes President Trump should not wait long for Putin to negotiate, as Putin does not intend to end the war on Ukrainian terms but rather on his own. She suggested Putin is buying time, hoping the West and the US will tire, allowing him to continue his aggression. Therefore, targeting Russia's energy sector and imposing further sanctions, ideally boosted by European allies, is crucial.

Russian Attacks on Ukraine

Ukrainian officials reported that Russian attacks across the country had killed at least six people and wounded dozens more. A kindergarten in Kharkiv was among the buildings hit. These attacks followed a significant drone and missile assault on Kyiv overnight.

Firefighters were seen carrying toddlers to safety after Russian drones struck a kindergarten in Kharkiv. Emergency teams responded to the scene, rescuing children from the debris while more Russian drones circled overhead. All children inside the kindergarten survived. A witness described the attack as targeting children, which he deemed inappropriate. The attack reportedly used Shahed drones, Iranian-made exploding drones that Russia has repeatedly employed against Ukrainian cities and power grids. Another witness recounted running from his car to call an ambulance after the explosion struck the kindergarten.

The strikes in Kharkiv were part of a broader wave of Russian attacks affecting at least eight Ukrainian cities, including the capital, Kyiv. One resident described neighbors being in "huge shock" after losing a daughter-in-law and two grandchildren, aged six months and eleven years old.

Ukraine's President Seeking Support and Trump's Proposal

These strikes occurred just hours after US President Donald Trump confirmed that his planned second summit with Vladimir Putin was on hold. With stalled talks, Ukrainian President Volodymyr Zelensky is seeking increased support from Europe. He has expressed approval of Trump's suggestion to freeze the conflict along the current front lines.

Zelensky stated his commitment to peace negotiations and a diplomatic approach to stopping Putin. He mentioned a long conversation with Trump, after which public messages from Trump proposing to "stay where we stay and begin conversation" were observed. Zelensky considered this a "good compromise" but was uncertain if Putin would support it, a sentiment he conveyed to President Trump. Russia has so far rejected this proposal, though Moscow insists preparations for a Trump-Putin summit are still ongoing. Meanwhile, for millions of Ukrainians, the strikes and the associated fear persist.

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