The U.S. Treasury Department on Wednesday levied sanctions against Russia’s two largest oil companies in what the agency framed as a response to Russia’s failure to commit to a peace process in Ukraine.

“Given President [Vladimir] 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. “Now is the time to stop the killing and for an immediate ceasefire.”

The U.S. Treasury Department on Wednesday levied sanctions against Russia’s two largest oil companies in what the agency framed as a response to Russia’s failure to commit to a peace process in Ukraine.

“Given President [Vladimir] 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. “Now is the time to stop the killing and for an immediate ceasefire.”

The sanctions affect Lukoil and Rosneft. The two companies together are responsible for almost half of Russia’s crude oil exports, which are a key source of revenue for the Russian government. The United Kingdom issued sanctions against the two companies last week.

Bessent’s statement left open the possibility that the United States would issue further sanctions: “Treasury is prepared to take further action if necessary to support President Trump’s effort to end yet another war.”

The move follows the United States decision to cancel plans for a Ukraine peace summit with Russia in Budapest, which U.S. President Donald Trump had previously announced.

The plans collapsed amid reports that Russia had not altered its negotiating position and after Russian Foreign Minister Sergey Lavrov rejected a cease-fire that would freeze the conflict on its current battlelines, which Trump supports.

This post is part of FP’s ongoing coverage of the Trump administration. Follow along here.