US President Donald Trump has imposed “tremendous” sanctions on Russia’s two largest oil companies, Rosneft and Lukoil, in a bid to pressure Russian President Vladimir Putin to end the Ukraine war. This move comes after months of failed talks between Trump and Putin, with Trump expressing frustration that his conversations with Putin “don’t go anywhere”. The sanctions involve freezing all Rosneft and Lukoil assets in the US and barring US companies from doing business with the two Russian oil giants.
The sanctions are part of a broader effort by the US and its allies to weaken Russia’s ability to fund its war machine. The European Union has also unveiled a fresh wave of sanctions, including a ban on imports of Russian liquefied natural gas. Trump has stated that he hopes the sanctions will be short-lived and that Putin will eventually agree to end the war. However, Russia has responded by conducting nuclear drills, escalating tensions between the two nations.
The sanctions have already had an impact on global oil prices, with Brent crude futures rising by 3.1% and US West Texas Intermediate crude futures rising by 3.2%. India, a major buyer of Russian oil, is reviewing its purchases to ensure compliance with the US sanctions. The move is seen as a significant escalation of US pressure on Russia, and it remains to be seen how Putin will respond to these latest sanctions.
