(Bloomberg) -- Oil surged after the US announced sanctions on Russia’s biggest producers, as President Donald Trump ramps up pressure on his counterpart Vladimir Putin to negotiate an end to the war in Ukraine.

Brent advanced as much as 3% to trade above $64 a barrel and West Texas Intermediate rallied after the US blacklisted state-run giant Rosneft PJSC and Lukoil PJSC, citing Moscow’s lack of commitment to peace in Ukraine. Trump is also seeking to squeeze Russia’s key crude buyers — India and China.

Most Read from Bloomberg

Pritzker Slams Chicago Mayor’s Plan for Tax on Big Payrolls

Cruise Ships Show South Korea’s Struggle to Host Global Leaders

MTA to Sell $230 Million of Debt Amid Tolling Plan Legal Fight

The sanctions mark a U-turn for Trump, who had announced last week he would meet Putin in the coming weeks and said repeatedly he believed Russia wanted to end the war. But on Tuesday, he said he didn’t want a wasted meeting.

The penalties “mark a shift in President Trump’s approach to Russia and opens the door for tougher sanctions down the road, which could ultimately impact Russian oil flows,” said Warren Patterson, the head of commodities strategy for ING Groep NV in Singapore. “The uncertainty is how effective these sanctions will be and what impact they actually have” on exports, he added.

Following the measures, Trump said he planned to speak to Chinese President Xi Jinping about the nation’s buying of Russian oil at a planned meeting next week in South Korea. On Tuesday, the US leader said India’s Prime Minister Narendra Modi assured him that the country would wind down its purchases.

The two nation’s became the biggest buyers of Russian oil following the war in Ukraine as other countries shunned Moscow for its invasion. Trump hit India with crushing tariffs for the trade, but has spared China from any action.

Rosneft, headed by Putin’s close ally Igor Sechin, and privately held Lukoil, are the two largest Russian oil producers, jointly accounting for nearly a half of the nation’s total exports, according to Bloomberg estimates. Taxes from the oil and gas industries account for about a quarter of the federal budget.

Separately, European Union countries have reached an agreement on a new package of Russian sanctions that are expected to be adopted on Thursday. The measures will target 45 entities that have helped the OPEC+ producer evade penalties, including 12 companies in China and Hong Kong, according to a statement from Denmark, which holds the EU’s rotating presidency.

Oil has bounced back from a five-month low reached on Monday, on signs the latest selloff was overdone and as a drop in US crude inventories helped ease oversupply concerns. Still, futures remain on track for a third monthly loss as expectations for a global surplus put downward pressure on prices.

Most Read from Bloomberg Businessweek

‘I Want to Win’: Inside Gavin Newsom’s Plan for Taking On Trump

Dead Dolphins and Diverted Cash Sink Cancún Theme Park Operator

Inside the Credit Card Battle to Win America’s Richest Shoppers

It’s Like Uber Eats But for Israeli Arabs Without Home Addresses

Robinhood Is Banking on Babies and 401(k)s to Get Everyone Trading

©2025 Bloomberg L.P.