Trump sanctions Russia’s biggest oil firms over ‘refusal to end senseless Ukraine war’ after talks with Putin 'went nowhere'

The US Treasury announced the penalties on Rosneft and Lukoil on Wednesday - just a day after it was confirmed that a planned meeting between the US President and the Russian leader in Budapest had been shelved.

Since the meeting was announced, Russia has not relented in its bombing campaign on its invaded neighbour, killing seven people including two children in its latest wave of missile and drone strikes on Wednesday.

"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," US Treasury Secretary Scott Bessent said in a statement.

He said that "now is the time to stop the killing and for an immediate ceasefire," adding that his department will "take further action if necessary to support President Trump's effort to end yet another war".

Speaking to reporters in the Oval Office alongside NATO cheif Mark Rutte, Mr Trump said he keeps having conversations with Putin that "don't go anywhere".

"I would say that it's time to make a deal. A lot of people are dying."

Read more: Trump’s plan to end Ukraine war at current frontlines is a ‘good compromise', Zelenskyy says

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But now, the US is attempting to pile pressure on Moscow as it scrambles to turn the tide.

"I think that they'll certainly have an impact," Mr Trump told reporters.

He added: "They're massive sanctions, and sanctions on oil, the two biggest oil companies, among the biggest in the world. Hopefully it'll push [Putin].

"Hopefully he'll become reasonable, and hopefully Zelenskyy will be reasonable too. It takes two to tango, as they say."

It comes after the UK government sanctioned the same two companies last week.

Hailing the move, Sir Keir Starmer said: "Last week, the UK sanctioned Russia’s two largest oil companies that fund Putin’s war machine.

"I’m pleased the US has now joined us with substantial sanctions on the same two oil companies. Putin must pay the price for his needless aggression. The killing must end now."

Mr Trump and Putin last met in Alaska in August for face-to-face talks, but future meetings are now in doubt due to what US officials describe as Russia’s “unchanging stance” on the conflict.

It comes after he met Ukrainian President Volodymyr Zelenskyy in Washington on Friday in a reportedly tense encounter.

Mr Trump described the talks as "positive", even though Ukraine did not secure the long-range missiles it had hoped for.

Speaking to reporters on Sunday, Mr Zelensky said Mr Trump backed away from the possibility of sending the missiles after a phone call with Putin, which took place just hours before the two leaders met on Friday.

Reports suggest Mr Zelenskyy, who had travelled to Washington to request increased US military support to fight Russia's war in Ukraine, was met with raised voices and condemnation by Mr Trump and his cabinet as the pair discussed the war during a heated discussion.

Mr Trump was reportedly seen to spout Putin's rhetoric, echoing that the conflict was a "special operation" and "not even a war."

Mr Trump is said to have even urged Mr Zelenskyy to give up key areas of Ukraine and cave to Putin's demands.

"In my opinion, he does not want an escalation with the Russians until he meets with them," Mr Zelenskyy said.

"After many rounds of discussion over more than two hours with him and his team, his message, in my view, is positive," he said, adding that Washington remained interested in economic deals with Kyiv.