U.S. imposes additional sanctions on Russian energy sector… "Must immediately move to a ceasefire in Ukraine"

The administration of U.S. President Donald Trump announced additional sanctions against Russia on the 22nd (local time). The move increases pressure as Russia has been lukewarm toward negotiations to end the war in Ukraine.

The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) said that day, "We are imposing additional sanctions on Russia because Russia is not engaging seriously in peace negotiations to end the war in Ukraine."

The Treasury Department said, "This will strengthen pressure on Russia's energy sector and weaken the Kremlin (the Russian government)'s ability to finance the war and support a weakened economy."

It added, "The United States will continue to support a peaceful resolution of the war, and lasting peace depends entirely on whether Russia is willing to enter negotiations in good faith," and "the Treasury will continue to use its sanctions authorities to support peace negotiations."

Treasury Secretary Scott Besent said, "Now is the time to stop the killing and move to an immediate ceasefire," and urged, "We call on our allies to join and follow these sanctions."

The companies designated for sanctions that day include 'Rosneft Oil Company' and 'Lukoil'. Not only two of Russia's major oil companies but also their subsidiaries were included.

The Treasury emphasized that these companies were designated because they were confirmed to be operating in the energy sector of the Russian Federation's economy. It added that all entities in which these companies hold 50% or more direct or indirect ownership will have their assets frozen.

These sanctions were imposed amid a situation in which President Trump and Russian President Vladimir Putin have shown differences over ending the war in Ukraine.

President Trump had previously emphasized his intention to end the war in Ukraine, following his leading role in a Gaza ceasefire agreement. He spoke with President Putin on the 16th and announced plans to hold a U.S.-Russia summit in Hungary within the next two weeks.

However, during preliminary consultations between the two sides, they were unable to narrow differences over how to end the war in Ukraine, and the summit itself is being read as effectively falling through.

Russia continues to insist that, as a precondition for peace negotiations, Ukraine must cede the entire Donbas (Donetsk and Luhansk) region. The previous night, Russian forces launched missile and drone attacks on Ukraine, killing six people, including two children.

Ukrainian President Volodymyr Zelensky and European leaders in a joint statement on the 21st urged, "Pressure on Russia's economy and defense industry should be increased until Putin is ready to make peace."

Kim Dae-young, Hankyung.com reporter kdy@hankyung.com