U.S., EU Hit Russia with New Energy Sanctions

The U.S. Treasury announced major sanctions blocking American dealings with Russia’s two largest oil firms, Rosneft and Lukoil, aiming to choke revenue for the Kremlin’s war effort; Ukraine’s president and envoy praised the move as necessary pressure. Russian leaders, including Vladimir Putin and Dmitry Medvedev, denounced the measures as “unfriendly” and an “act of war,” warning they could push up global oil prices even if they would not cripple Russia’s economy. The action coincided with an EU package that includes a planned future ban on Russian LNG imports and other penalties. EU leaders asked the Commission to develop options to meet Ukraine’s 2026–2027 financial and military needs but declined to use frozen Russian assets now, with Belgium refusing to proceed without stronger legal guarantees. The sanctions announcement also prompted U.S. President Trump to cancel a proposed meeting with Putin over concerns about progress in negotiations. NATO-aligned states reported a brief Russian airspace incursion over Lithuania, underscoring Baltic fears of escalating provocations and fueling calls for strengthened European air defenses.