Trump Sanctions On Russian Oil Are ‘Starving Putin’s War Machine’

President Donald Trump’s recent sanctions targeting Russia’s top oil producers are severely impacting Moscow’s ability to finance its military campaign in Ukraine, according to an internal Treasury Department memo.

The Office of Foreign Assets Control (OFAC), which enforces economic sanctions, released a preliminary analysis showing that the sanctions placed on Lukoil and Rosneft last month are slashing Russian oil revenues and undercutting the Kremlin’s war chest.

“President Trump has targeted Russia’s two largest oil companies in one of the most impactful Treasury actions to date,” a Treasury spokesperson said. “Russian oil is now selling at multi-year lows, starving Putin’s war machine. President Trump is the peace-and-prosperity President, and Treasury is prepared to take further action if necessary to end the senseless killing.”

The report highlights how the sanctions have driven down the price of Russian crude, limiting the cash inflow Moscow relies on to sustain its war effort. “While there are multiple prices of Russian oil depending on grade and location, various grades are trading well below all other international prices,” the summary notes. “Several key Russian grades are selling at multi-year lows, widening their spreads to global benchmarks. This is testament to the fact that demand for Russian oil is plunging, driven by the efficacy of U.S. sanctions.”

The memo also pointed to a noticeable retreat from Russian energy by some of its largest remaining customers. “Nearly a dozen major Indian and Chinese purchasers of Russian oil have announced intentions to pause their purchases of Russian December deliveries,” the memo states.

Trump’s administration imposed the new round of energy sanctions on October 22, marking one of the most aggressive moves against Russia’s economic infrastructure since his return to office.

“Now is the time to stop the killing and for an immediate ceasefire,” Treasury Secretary Scott Bessent said when the measures were announced. “Given President Putin’s refusal to end this senseless war, Treasury is sanctioning Russia’s two largest oil companies that fund the Kremlin’s war machine.”

Bessent emphasized that the sanctions are part of Trump’s broader effort to force a ceasefire in Ukraine while punishing Moscow’s continued aggression. “We encourage our allies to join us and adhere to these sanctions,” he added.

This marks a dramatic reversal from the Biden administration’s earlier approach, which critics argued lacked the teeth necessary to disincentivize Russia’s war effort. Trump’s sanctions have already shown measurable impact just weeks into enforcement, signaling a new, aggressive strategy to apply pressure on Moscow through its most vital sector—energy.

While critics warn of global market volatility, the Treasury’s initial assessment paints a different picture: Russia is hurting, and fast.