Treasury Secretary Scott Bessent said the sanctions are meant to increase pressure on Russia’s energy sector to persuade Moscow to agree to an immediate ceasefire in Ukraine.

The sanctions were announced after a planned summit between US President Donald Trump and Russian President Vladimir Putin was postponed indefinitely. The Treasury Department said it’s ready to take additional actions to support President Trump’s efforts to end the conflict in Ukraine if Russia continues to reject peace talks.

Speaking at the Oval Office on Wednesday during a meeting with NATO Secretary General Mark Rutte, Trump said he canceled the planned meeting with President Putin in Hungary because both sides felt it was not the right time and achieving the expected outcomes would be difficult.

Trump said he believes the new sanctions on Russian oil companies will have an impact on Moscow. “These are massive measures targeting Russia’s two biggest oil companies—some of the largest in the world. We hope this will encourage Moscow to act reasonably, and we also hope President Zelenskyy will take a constructive approach toward achieving peace,” said Trump.