Trump’s Sanctions on Russia

On the evening of October 22, 2025, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) published new Trump’s sanctions on Russia under Executive Order No. 14024. These are the first sanctions imposed by President Trump against Russia since the start of his second term.

Trump’s sanctions on Russia have long been, and remain, one of the hottest topics of discussion. Once it became clear that Donald Trump would assume the presidency almost a year ago, his stance on sanctions against Russia attracted widespread attention and sparked considerable uncertainty.

It should be noted that Trump’s unpredictable approach has kept everyone on edge, trying to anticipate how he would act on this issue. Expectations ranged widely, from a complete lifting of sanctions against Russia to their sharp escalation.

It is worth mentioning that even before Trump assumed the presidency, we expressed our view that hopes for a rapid lifting of sanctions on Russia under President Trump were unrealistic. If such a process were to take place, we suggested it would unfold in multiple stages over years, if not decades, and would depend on Russia’s leadership committing to measures such as a ceasefire in Ukraine, rebuilding destroyed infrastructure, and fulfilling similar obligations.

Now, ten months into Trump’s second term, he has finally clarified his position on this issue. His sanctions targeting the leading entities in Russia’s oil sector serve as a clear demonstration of that stance.

Trump’s Sanctions on Russia’s Largest Oil Companies

According to a press release published on OFAC’s website, Trump’s sanctions on Russia were imposed due to “Russia’s lack of serious commitment to a peace process to end the war in Ukraine.” The measures are designed to increase pressure on Russia’s energy sector and reduce the funds available to continue the war.

The sanctions specifically target Russia’s two largest oil and gas companies, Rosneft and Lukoil, along with their numerous divisions and subsidiaries. In total, 34 subsidiaries of these companies are included on the OFAC SDN List.

It’s important to note that this list of 36 entities, including Rosneft, Lukoil, and their subsidiaries, is not exhaustive. Under OFAC’s Fifty Percent Rule, any company that is 50% or more owned (directly, indirectly, individually, or in the aggregate) by one or more individuals or entities on the OFAC SDN List is also considered subject to U.S. sanctions.

Consequences of the New OFAC Sanctions

Trump’s sanctions on Russia were announced almost simultaneously with his decision to cancel a previously planned meeting with Russian President Putin in Budapest. These measures mark the first concrete steps by the current U.S. administration to tighten its policy toward Russia, signaling a notable shift in Trump’s approach, from persuasion to sanctions-driven pressure.

According to U.S. Treasury Secretary Scott Bessent, the U.S. is “prepared to take further action if necessary” to ensure that Trump’s sanctions on Russia achieve their goal of ending the war. He also called on U.S. allies to join in and adhere to these measures.

Being added to the OFAC SDN List carries serious consequences. All assets and property of sanctioned individuals and companies located in the U.S. or under U.S. jurisdiction are blocked. This applies not only to the entities and individuals directly named on the U.S. sanctions list but also to any company in which a sanctioned person or entity owns 50% or more, whether directly or indirectly.

Without a special OFAC license, any transactions involving these blocked assets are prohibited. Violating these rules can lead to multi-million-dollar fines and, in some cases, criminal liability.

Conclusion

Trump’s sanctions on Russia make it clear that there is little hope for a near-term lifting of U.S. sanctions. On the contrary, the trend points toward further increasing U.S. pressure on Russia and introducing additional restrictive measures.