US Urges Europe to Tighten Sanctions on Russian Oil Revenues to End Ukraine War

U.S. Secretary of the Treasury Scott Bessent speaks at a press conference during the Institute of International Finance’s Global Perspectives Forum in Washington, D.C., United States, on April 23, 2025. REUTERS/Elizabeth Frantz

The U.S. Secretary of the Treasury, Scott Bessent, called on European countries to more actively limit Russia’s revenues from oil sales and to consider new sanctions against Russian companies in order to accelerate the end of the war. He expressed these positions during public remarks, underscoring Europe’s role in shaping the global energy landscape and financial support for aggression.

According to Bessent, Europe introducing significant secondary tariffs on buyers of Russian oil could bring about the end of the war in Ukraine within 60–90 days, depriving Moscow of its main source of revenue.

Bessent stressed that Europe should play a more active role in reducing Russia’s oil revenues and in halting hostilities.

He also noted that tariffs on imports from India through purchases of Russian oil have already yielded some progress in talks with India; the next round of negotiations between the United States and India is planned for the coming week against the backdrop of rising rhetoric between Donald Trump and Narendra Modi.

Key Steps and the Impact of Sanctions

According to Bessent, the United States is ready to work with Europe to implement tougher sanctions against Russian companies, notably Rosneft and Lukoil, as well as to leverage frozen Russian sovereign assets. Some assets are estimated at around $300 billion, which could be seized or placed in a special fund as collateral for a loan to Ukraine.

On July 30, 2025, Donald Trump imposed a 25% tariff on Indian imports due to purchases of Russian oil. On August 4, Trump stated that he would raise tariffs again over India’s purchases of Russian oil; New Delhi could also face an additional financial burden for economic cooperation with Russia.

Subsequently, Trump commented on these tariffs and noted that Indian Prime Minister Narendra Modi is his friend, but India does not do business with the United States the way Trump would like.

On July 29, Bessent warned Chinese officials that continuing to buy sanctioned Russian oil could lead to tariffs under a bill in Congress.

On July 18, the EU introduced the 18th package of sanctions against Russia. The package included the Nayara Energy refinery in India, which processes about 400,000 barrels of oil per day and has about 7,000 fuel-retailing points across India; the refinery is partially owned by the Russian state company Rosneft.

On August 6, 2025, the U.S. president signed an executive order imposing an additional 25% tariff on India, raising the total tariff on Indian exports to 50% – one of the highest among the United States’ trading partners. India’s Ministry of External Affairs called the tariffs unfair and said it would use all necessary measures to protect national interests.

On August 27, the tariffs took effect; they affected more than 55% of goods shipped to the United States – the largest market for India – and dealt the hardest blows to sectors such as textiles and jewelry.

On September 5, India’s Finance Minister Nirmala Sitharaman stated that the country would continue to buy Russian oil, guided by its own interests; Moscow lowered the price for New Delhi.

In sum, while European steps to impose tariffs on Russian oil have the potential to accelerate the end of the war, their effectiveness depends on global coordination and the responses of other major energy consumers in world markets.