On October 22, the United States imposed a new package of sanctions against leading Russian oil companies and called on Russia to immediately agree to a ceasefire. The restrictions were a response to the Kremlin’s lack of genuine readiness for a peaceful settlement, increasing pressure on Russia’s energy sector and complicating the Kremlin’s ability to finance military needs and support its weakened economy.
This is reported by Business • Media
Key Players in the Russian Oil Market Under Sanctions
The new restrictions target Russia’s two largest oil companies, Rosneft and Lukoil. As a result, their shares began to plummet. The sanctions also affected several subsidiaries of the Russian oil giants, with a total of 36 organizations linked to the aggressor country’s energy sector on the list.
Analysts note that these are the first sanctions against Russia that US President Donald Trump has implemented since returning to the White House. A key reason for this move was the growing frustration of the American administration with Putin’s actions. The decision was made following an unsuccessful phone call between the US Secretary of State and the Russian Foreign Minister, which did not lead to any progress on the ceasefire issue. Consequently, Trump’s meeting with Putin was deemed inappropriate, and the US administration moved to tougher measures.
Global Reaction: India and China Reduce Oil Imports from Russia
According to Bloomberg, the new sanctions will lead to an almost complete halt of Russian oil supplies to the largest Indian refineries. The only exception may be Nayara Energy, which is partially controlled by Rosneft. State-owned oil companies in China have already suspended purchases of Russian oil via maritime routes due to American sanctions. Private companies are also expected to halt purchases, but they are likely to seek alternative supply routes.
US President Donald Trump intends to discuss with Chinese President Xi Jinping the possibility of limiting China’s purchases of Russian oil and ways to end the Russian war against Ukraine.
In Russia, the response to the new US sanctions and Trump’s refusal to meet with Putin in Budapest was a statement that Washington has “taken the path of war with Russia.” According to Dmitry Medvedev, Deputy Chairman of the Security Council of Russia, Washington’s decision eliminates the “necessity” to negotiate and opens the way for more active military actions against Ukrainian positions “on the ground, not at the negotiating table.”
Additionally, Medvedev once again threatened Ukraine with new strikes and completely dismissed the possibility of negotiations to end the war. China, which remains a strategic ally of Moscow, criticized the US and EU sanctions against Russia.