ERBIL, Kurdistan Region of Iraq - The US Department of the Treasury on Wednesday imposed major sanctions on Russia’s two largest oil companies, after President Donald Trump expressed frustration with his Russian counterpart Vladimir Putin and amid ongoing calls to end the war in Ukraine. 

“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,” Treasury Secretary Scott Bessent said in a statement.

The sanctions came after a planned Trump-Putin meeting in Budapest was canceled due to Washington’s disappointment with Moscow’s progress toward ending its 3.5-year war with Ukraine.

Bessent emphasized that Treasury is prepared to take further action “if necessary” to support Trump’s efforts to end the war.

The sanctions targeted Russia’s two largest oil companies, Rosneft and Lukoil, along with several of their subsidiaries, and followed another round of sanctions against Moscow, imposed by the European Union.

“We encourage our allies to join us in and adhere to these sanctions,” Bessent said, adding that now is the time “for an immediate ceasefire.” 

The sanctions came after Trump said that his talks with Putin to end the war “don’t go anywhere.”

US Secretary of State Marco Rubio stressed that Washington is still willing to engage in talks with Moscow despite the sanctions. 

"We're always going to be interested in engaging if there's an opportunity to achieve peace," Rubio told reporters.

Rosneft holds around 40 percent of Russia’s oil production and about 30 percent of the nation’s oil refining market, and is one of the largest taxpayers in Moscow, holding deep ties with Russia’s economy. Lukoil, accounting for about 15 percent of Russia’s oil and gas production, also plays a vital role in the country’s energy sector and export markets.

Russia has targeted several of Ukraine’s major gas facilities over the past month, prompting them to halt operations, and leading Ukrainian President Volodymyr Zelensky to seek external support for imports and to restore the damage caused by the strikes.

Russia launched a full-scale invasion of Ukraine in February 2022. The war has killed tens of thousands and displaced hundreds of thousands more.