The new sanctions came a day after plans for a summit between US President Donald Trump and Russian President Vladimir Putin fell apart. Trump said he cancelled the meeting because “it didn’t feel right to me.”

The US Treasury Department said Rosneft and Lukoil, Russia’s two largest oil companies, were targeted to damage Moscow’s ability to fund its war machine.

The move marked a sharp turnaround for the White House, which has alternated between pressure and diplomacy toward Russia.

“Now is the time to stop the killing and for an immediate ceasefire,” US Treasury Secretary Scott Bessent said. Oil prices rose more than $2 a barrel following his remarks.

For months, Trump resisted pressure from lawmakers to impose energy sanctions, hoping Putin would agree to end the fighting. But with no breakthrough, he said the time had come.

Trump added he was still not ready to provide Ukraine with long-range Tomahawk missiles, noting it would take Ukrainian forces at least six months to learn their use.

Ahead of a meeting next week with Chinese President Xi Jinping in South Korea, Trump urged Beijing to use its influence over Moscow to halt the conflict.

In a show of force, the Kremlin released video of General Valery Gerasimov reporting to Putin on the drills, which included the firing of intercontinental ballistic missiles.

Russia’s Defence Ministry said Tu-22M3 bombers flew over the Baltic Sea, shadowed by foreign, presumably NATO fighter jets.

At key moments in the war, Putin has invoked Russia’s nuclear might to warn Kyiv and the West. NATO has also been conducting nuclear deterrence exercises this month.

Meanwhile, the EU approved a 19th package of sanctions against Russia, including a ban on Russian liquefied natural gas imports.

The Wall Street Journal reported that Washington lifted some restrictions on Ukraine’s use of long-range missiles provided by allies, though Trump denied this.

Sweden announced it had signed a letter of intent to export Gripe fighter jets to Ukraine, as European governments step up support for Kyiv in a war now stretching into its fourth year.

Trump says he won’t ‘waste’ meeting

Russia and Ukraine exchanged heavy overnight missile attacks as uncertainty clouded US led peace efforts.

After Putin and Trump last week announced plans for a summit in Hungary, the White House later said there were “no immediate plans” for such a meeting.

Trump said he did not want a “wasted meeting” a view echoed by the Kremlin.

US Secretary of State Marco Rubio, leaving for the Middle East, said Washington still hoped to engage Moscow.

Kremlin spokesman Dmitry Peskov confirmed summit preparations continued but said thorough groundwork was needed.

The delay followed Russia’s reiteration of its previous peace terms that Ukraine cede full control of the Donbas region, effectively rejecting Trump’s proposal to halt fighting along current front lines.

Defence stocks surge in Europe

European defence shares rose after news of the summit delay. Most EU governments continue to back Kyiv and have pledged higher defence spending.

EU leaders are expected Thursday to discuss using frozen Russian assets to fund a $163 billion loan for Ukraine, a plan Moscow calls theft and vows to retaliate against.

Separately, the Trump administration is weighing restrictions on software-powered exports to China, including laptops and jet engines, to counter Beijing’s latest rare earth export curbs, officials said.