Karina Bovsunovskaya09:46, 23.10.25

According to experts, Russians are already experiencing difficulties financing the government and the armed forces of the Russian Federation.

US President Donald Trump announced new sanctions against two of Russia’s largest companies amid Washington’s frustration with the war in Ukraine. These sanctions will be the first direct US measures against Russia during Trump’s second term, The Wall Street Journal reports .

It is known that the restrictions are directed against Lukoil and Rosneft, as well as almost 30 of their subsidiaries.

The publication adds that the sanctions are being imposed due to the stalemate in ceasefire negotiations in Ukraine. Furthermore, Trump postponed his planned meeting with Russian dictator Vladimir Putin, which was scheduled to take place in Budapest.

“Until today, Rosneft and Lukoil were cut off from American capital markets. Today, they are completely cut off from the dollar—from all transactions of any kind,” explained Eddie Fishman, a former senior State Department official responsible for sanctions.

In its sanctions announcement, the Treasury Department also warned that “foreign financial institutions that conduct or facilitate significant transactions or provide any services related to Russia’s military-industrial base” also “risk being subject to sanctions.”

The ministry added that transactions with newly designated entities “may result in the imposition of secondary sanctions on foreign financial institutions involved in them.”

“A Chinese bank, a UAE oil trader, an Indian oil refinery—if any of them conduct transactions with these Russian companies, they could be subject to US sanctions,” Fishman assured.

Sanctions against Russia’s ability to sell oil and energy resources are also expected to have a significant impact on the country’s economy.

“Russia’s military machine will take a serious hit. They’re already struggling to fund their government and military, so this will impact their ability to continue the war and could be the driving factor that forces Putin to the negotiating table,” said Kim Donavan, a former White House and Treasury Department official who now works at the Atlantic Council think tank.

At the same time, senior European officials have long said that tightening sanctions against Russia will force the Kremlin to engage in serious negotiations to end the war in Ukraine. Today, October 23, the EU is scheduled to approve the 19th package of measures, which will also include a ban on imports of liquefied natural gas from Russia, starting next year.

“EU leaders are also expected to back a plan Thursday that would loan Ukraine $200 billion from Russian assets frozen in the early days of the war. The money is intended to help Ukraine maintain its armed forces for the next two years, in an effort to persuade the Kremlin to seek ways to end the war,” the WSJ concluded.

(c)UNIAN 2025