The President of the United States, Donald Trump, imposed new and broad sanctions on Russia’s two largest oil producers, Rosneft and Lukoil, in what he described as “tremendous sanctions” aimed at forcing Moscow to the negotiating table over its war in Ukraine.
The sanctions have the potential to redesign the world map of tanker trade, with Bloomberg expecting supplies of Russian crude oil to India to be completely depleted after the sanctions and fall to nearly zero in a short time.
Speaking in the Oval Office on Wednesday alongside NATO Secretary General, Mark Rutte, Trump said the measures were necessary because President Vladimir Putin had shown “a lack of serious commitment to a peace process.”
The greater demand for non-Russian barrels is likely to support the price arbitrage between West and East.
“These are tremendous sanctions,” Trump said. “These are against their two big oil companies, and we hope they don’t last long. We hope the war gets resolved.”
The new sanctions (the broadest energy sanctions imposed since Trump returned to the White House) block the companies and dozens of subsidiaries from access to U.S. banks and dollar transactions.
“The time has come to stop the killings and for an immediate ceasefire,” said U.S. Treasury Secretary Scott Bessent. “Given President Putin’s refusal to end this senseless war, the Treasury is sanctioning Russia’s two largest oil companies that fund the Kremlin’s war machine. The Treasury is prepared to take further action if necessary.”
Trump canceled a planned meeting with Putin in Budapest, citing frustration over the stalemate in talks.
From a shipping perspective, SEB, a Swedish bank, views Trump’s sanctions and India’s purported phasing out of Russian oil imports as a net benefit for tankers.
“The shift in India’s oil purchasing to alternative global markets (mainly the Atlantic Basin or MEG) should see incremental demand for compatible tonnage on long-haul voyages, replacing the voyages currently handled by a mix of tankers exporting Russian crude that are compliant and non-compliant,” suggested SEB in a note to its clients today, adding: “The greater demand for non-Russian barrels is likely to support the price arbitrage between west and east, making Atlantic barrels more attractive to India and other Asian regions, opening up to more long-haul exchanges.”
Commenting on the sanctions, Jorge León, head of geopolitical analysis at Rystad Energy, said: “The latest US sanctions on Russia’s largest oil producers represent a significant and unprecedented escalation in Washington’s pressure campaign against Moscow.
The sharp increase in oil prices following the announcement underscores market fears that Russian crude exports – particularly to India, one of its main clients – could fall drastically.
Combined with the recent wave of attacks on Russian oil infrastructure, Leon said the new sanctions raise the possibility of major disruptions to Russian crude production and exports, increasing the risk of forced production shutdowns.
In addition to the news from Washington and New Delhi, the European Union is expected to adopt its nineteenth sanctions package today, which for the first time will target four Chinese companies accused of helping Moscow circumvent oil export restrictions.
The package will also include a gradual ban on Russian LNG imports starting January 2027 and new measures against the so-called shadow fleet of tankers. The lists are said to include two independent refineries, a Chinese trading house, and a non-oil entity involved in sanctions circumvention.
A draft statement from the European External Action Service (EEAS) proposes “pre-authorized shipments” in cooperation with the flag states of ships carrying disguised Russian oil.
Last week, the UK government launched its strongest sanctions offensive to date against Russia’s energy sector, directly targeting the major oil companies Rosneft and Lukoil, four Chinese oil terminals, and 44 tankers from Moscow’s shadow fleet, as well as seven LNG transport vessels.
Over the past five years, the number of sanctioned vessels worldwide has steadily increased, from around 350 in September 2020 to approximately 1,700 in September 2025, according to an analysis by maritime analytics firm Kpler. The overlap between the different administrations sanctioning vessels is finally also starting to grow, with greater coordination between the UK and the EU being particularly notable.
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