Washington : The United States imposed sweeping new sanctions on Russia’s largest oil producers on Wednesday, increasing economic pressure on Moscow as it carried out large scale nuclear drills during the ongoing war in Ukraine.

The US Treasury Department announced sanctions against state owned Rosneft and private oil major Lukoil, accusing them of helping to finance Russia’s military operations. The move is aimed at cutting off one of the Kremlin’s most important sources of revenue.

“Tougher measures are necessary to stop the killing and bring Russia to the negotiating table,” Treasury Secretary Scott Bessent said in a statement. President Donald Trump added that he “just felt it was time” to act more firmly, stressing that Washington still supports an immediate ceasefire.

The sanctions freeze any US based assets of the targeted firms and prohibit American companies and citizens from doing business with them. Analysts say the measures could further tighten global oil supplies, with prices already rising more than two percent following the announcement.

In Moscow, the Kremlin responded by showcasing its military might. The Russian Defence Ministry confirmed it had conducted strategic nuclear drills, including the launch of intercontinental ballistic missiles from submarines, aircraft, and land based systems. President Vladimir Putin personally oversaw the exercise, which officials described as routine.

Western observers, however, viewed the drills as a show of strength at a moment of rising tension. The simultaneous timing of sanctions and military exercises highlights the deepening standoff between Washington and Moscow following the delay of a planned Trump Putin summit earlier this week.

For Russia, the sanctions threaten a crucial pillar of its economy, as oil exports fund a large portion of the national budget. For the US, the decision marks a significant shift, moving beyond targeting individuals and banks to striking directly at the energy sector that sustains the war effort.

As both sides harden their positions, hopes for renewed diplomacy appear to be fading, leaving the war’s outcome and its global repercussions increasingly uncertain.