The United States has imposed sweeping new sanctions on Russia’s top oil companies, Rosneft and Lukoil, accusing Moscow of showing “no genuine interest” in ending the war in Ukraine.

The announcement came as Russia carried out large-scale nuclear exercises in a fresh display of military might.

The sanctions, unveiled by the U.S. Treasury Department on Wednesday, aim to weaken Russia’s ability to fund its ongoing military operations in Ukraine.

Treasury Secretary Scott Bessent said the sanctions were intended to force Russia toward an immediate ceasefire. “Now is the time to stop the killing,” he stated.

Oil prices rose by more than $2 per barrel following the announcement, reflecting concerns over supply disruptions.

Trump cancels summit with Putin

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

He clarified that while he remains committed to peace efforts, he does not want to engage in “a wasted meeting.” The Kremlin echoed a similar sentiment, with spokesperson Dmitry Peskov confirming that Moscow preferred to prepare thoroughly before any future talks.

Moscow’s nuclear show of force

As diplomatic uncertainty deepened, Russia released footage of large-scale nuclear drills. General Valery Gerasimov, head of Russia’s General Staff, reported to President Putin on the exercises, which included missile launches from ground systems, submarines, and aircraft.

The drills featured intercontinental ballistic missiles capable of striking the United States, signaling Moscow’s intent to project strength amid escalating Western pressure.

Russia’s Defence Ministry also reported that Tu-22M3 bombers flew over the Baltic Sea, shadowed at intervals by NATO fighter jets.

EU tightens its own sanctions

In a parallel move, the European Union approved its 19th sanctions package against Russia, which includes a ban on imports of Russian liquefied natural gas (LNG). Denmark, which currently holds the rotating EU presidency, confirmed the measures on Wednesday.

Meanwhile, Sweden signed a letter of intent to export Gripen fighter jets to Ukraine, as Kyiv continues to strengthen its defences. Ukrainian President Volodymyr Zelenskiy said his country hopes to acquire at least 100 Gripens by next year.

Trump urges China’s role in peace push

Ahead of his upcoming meeting with Chinese President Xi Jinping in South Korea, Trump expressed hope that Beijing could use its influence over Moscow to help bring an end to the war. “I’d like to see President Xi use his leverage with Putin,” he told reporters.

However, he ruled out supplying Ukraine with Tomahawk missiles for now, saying Kyiv’s forces would need months of training to operate them effectively.

European defence stocks surged following the announcement of sanctions and the postponed Trump-Putin summit. Analysts said investors expect sustained demand for military equipment as the conflict stretches into its fourth year.

EU leaders are also preparing to discuss a controversial plan to use frozen Russian assets to fund a $163 billion loan to Ukraine—a move Moscow has condemned as “theft” and threatened to retaliate against.