US sanctions Russian oil giants as Moscow conducts nuclear drills

WASHINGTON/MOSCOW: The United States imposed sweeping new sanctions on Russia’s top oil companies, Rosneft and Lukoil, on Wednesday, accusing Moscow of prolonging the war in Ukraine even as Russia showcased its nuclear arsenal in large-scale military drills.

The announcement came just a day after a planned summit between US President Donald Trump and Russian President Vladimir Putin was abruptly called off. Trump told reporters he canceled the meeting because “it didn’t feel right.”

According to the US Treasury Department, the sanctions are aimed at weakening Russia’s capacity to finance its war effort. The move represents a major shift for the White House, which in recent months alternated between conciliatory gestures and tougher rhetoric toward Moscow.

“Now is the time to stop the killing and agree to an immediate ceasefire,” Treasury Secretary Scott Bessent said. Following the announcement, global oil prices rose more than $2 per barrel.

Trump, who had resisted congressional pressure to target Russia’s energy sector, said he concluded that further restraint would not end the war. However, he ruled out providing Ukraine with long-range Tomahawk missiles, arguing that Ukrainian forces would need months of training before they could deploy them effectively.

The president also urged Chinese leader Xi Jinping, whom he is set to meet in South Korea next week, to use his influence with Putin to bring hostilities to an end.

Meanwhile, the Kremlin released footage of Russian military exercises involving strategic nuclear forces. The drills featured missile launches from land, submarines, and aircraft, including intercontinental ballistic weapons capable of reaching the United States. Russia’s Defence Ministry said its Tu-22M3 bombers also flew over the Baltic Sea, shadowed by NATO fighter jets.

The show of force comes amid a new round of EU sanctions, the bloc’s 19th package, which includes a ban on Russian liquefied natural gas imports.

Separately, The Wall Street Journal reported that Washington had lifted restrictions on Ukraine’s use of certain long-range missiles supplied by Western allies, potentially allowing strikes deeper into Russian territory. Trump denied that claim on social media.

Sweden announced Wednesday it had signed a letter of intent to export Gripen fighter jets to Ukraine. President Volodymyr Zelenskiy, visiting Swedish defence firm Saab, said Kyiv expects to receive at least 100 of the jets next year.

SUMMIT PLANS ON HOLD

The collapse of the Trump-Putin summit has cast new uncertainty over diplomatic efforts to end Europe’s deadliest conflict since World War Two.

The leaders had initially agreed to meet in Hungary following a surprise phone call last week, but after talks between their foreign ministers on Monday, the White House said Trump had “no plans to meet Putin in the immediate future.”

“I don’t want a wasted meeting,” Trump said, a sentiment echoed by the Kremlin.

US Secretary of State Marco Rubio, speaking before departing for the Middle East, said Washington remained open to talks with Russia. Kremlin spokesperson Dmitry Peskov also confirmed that preparations for a future meeting were continuing, though no date had been set.

According to diplomatic sources, Russia reiterated its demand that Ukraine surrender control of the Donbas region as part of any peace deal – a proposal that contradicts Trump’s suggestion for both sides to halt at current front lines.