MOSCOW – Russian President Vladimir Putin struck a defiant tone on Thursday following the announcement of new U.S. sanctions targeting Russia’s two largest oil companies. The measures, imposed by U.S. President Donald Trump, are intended to pressure the Kremlin to end its war in Ukraine and triggered an immediate 5% surge in global oil prices.
Sanctions Target Rosneft and Lukoil, Disrupting Global Oil Flow
The sanctions directly impact oil giants Rosneft and Lukoil, which collectively account for over 5% of the world’s oil production. The move represents a significant policy reversal for President Trump, who just last week announced plans for a summit with Putin in Budapest. The financial impact is already being felt in global markets, with Chinese state oil majors reportedly suspending spot purchases of Russian oil and Indian refiners planning substantial cuts to their crude imports from Russia. While the immediate financial blow to Moscow may be contained, the sanctions serve as a powerful signal of Trump’s intent to constrict Russia’s revenue streams.
Putin Dismisses Impact as Trump Vows to Reassess
In response to the measures, President Putin dismissed the sanctions as an unfriendly act that would not significantly harm the Russian economy. He emphasized Russia’s pivotal role in the global energy market, warning that a sharp drop in supply would lead to higher prices that would be “uncomfortable for countries like the United States.” “No self-respecting country and no self-respecting people ever decides anything under pressure,” Putin stated. When asked about these comments, President Trump told reporters, “I’m glad he feels that way. That’s good. I’ll let you know about it in six months from now.”
Diplomatic Shift as Planned Summit is Cancelled
The sanctions announcement coincided with a diplomatic about-face from the White House. President Trump confirmed that his planned summit with President Putin had been cancelled, stating, “It just didn’t feel right to me… It didn’t feel like we were going to get to the place we have to get.” Putin, however, suggested the meeting was likely postponed rather than cancelled entirely. This shift follows Trump’s recent reversion to advocating for an immediate ceasefire in Ukraine—a position supported by Kyiv but opposed by Moscow, which believes it would only allow Ukraine to rearm.
EU Bolsters Pressure with New Sanctions Package
The U.S. actions were complemented by new measures from the European Union, which adopted its 19th package of sanctions against Russia. The EU sanctions include a ban on Russian liquefied natural gas (LNG) imports and target entities in China and Central Asia that facilitate sanctions evasion. While the EU has drastically reduced its reliance on Russian energy since 2022, LNG now represents the largest remaining energy import from Russia. Meanwhile, at a meeting in Brussels, EU leaders agreed to fund Ukraine’s pressing financial needs for the next two years but stopped short of explicitly endorsing a large loan backed by frozen Russian assets, a move Moscow warned would trigger a “painful response.”
