The US has announced new sanctions targeting Russia’s two largest oil companies on Wednesday as a “result of Russia’s lack of serious commitment to a peace process to end the war in Ukraine.”
The sanctions against Rosneft and Lukoil, as well as dozens of subsidiaries, is part of an effort to increase pressure on Moscow to end the war, which began in 2022 when Russian forces invaded Ukraine.
“Every time I speak to Vladimir, I have good conversations and then they don’t go anywhere,” Trump told reporters alongside NATO secretary general Mark Rutte on Wednesday, not long after the sanctions were announced.
The northern European financial services group SEB said on Thursday that the price of oil (Brent) has risen by a couple of dollars to $64.3 per barrel and over the past two days oil has risen by just over three dollars per barrel.
There was a stony silence from Moscow after the U.S. president Donald Trump criticized Russian president Vladimir Putin and slapped sanctions on Russia’s two largest oil companies.
However, the Russian foreign ministry on Thursday responded to the sanctions imposed against two oil majors, mentioning that “If the US Administration follows the playbook of its predecessor, it will only endanger global economic stability.”
Moscow also said that the ministry of foreign affairs will respond with relevant commentary through the press service on the cancellation of the proposed US-initiated Russia-US summit. “We have noted the statements made by US President Donald Trump on October 22, including regarding the “cancellation” of the proposed US-initiated Russia-US summit. Relevant commentary will be provided through the Press Service of the President of Russia,” the ministry posted on X.
Trump had repeatedly threatened tougher measures against Moscow, but has avoided them until now in hopes of brokering a peace deal in the three-and-a-half year long invasion.
He called the sanctions package “tremendous,” adding that he hoped they could be swiftly withdrawn if Russia agreed to stop the war.
US treasury secretary Scott Bessent said the sanctions were needed due to “Putin’s refusal to end this senseless war.” “Treasury is prepared to take further action if necessary to support President Trump’s effort to end yet another war. We encourage our allies to join us in and adhere to these sanctions.”
Trump shared a post on Truth Social on Wednesday where he posted a statement by the US department of the treasury with the title, ‘Treasury sanctions major Russian oil companies, calls on Moscow to immediately agree to ceasefire’.
The sanctions block dozens of subsidiaries tied to both energy giants and signal a broader push to isolate Russia’s economy and to “degrade the Kremlin’s ability to raise revenue for its war machine.”
Officials say more action could follow if Russia continues to refuse peace talks.
Experts focused on combatting Russia’s war against Ukraine said that Trump’s decision to impose oil sanctions marked one of the first times the president was flexing his sanctions power in office against Russia and signaling that he could go further and harder against the Kremlin.
The move was welcomed by Kyiv and some of Ukraine’s most hawkish supporters as a good first step.
“The new U.S. sanctions against Russia’s oil giants are a clear signal that prolonging the war and spreading terror come at a cost. And this is a fair and absolutely deserved step. It is precisely pressure on Russia that will be effective for achieving peace, and sanctions are one of its key components,” Ukrainian president Volodymyr Zelenskyy said in a statement.
