U.S. President Donald Trump has decided to temporarily refrain from imposing additional sanctions against Russia and its key trading partners following a meeting with Russian President Vladimir Putin. The American leader noted that he does not currently see the need to revisit the issue of sanctions, but he does not rule out that this matter may be reconsidered in a few weeks.
This is reported by Business • Media
“I think we don’t need to think about this for now. The meeting with Putin went well. I might have to think about it in 2-3 weeks (particularly regarding tariffs for China)”
The U.S. Considered Sanctions Against Major Russian Oil Companies
According to information from American sources, U.S. authorities discussed the possibility of imposing sanctions against leading Russian oil corporations—“Rosneft” and “Lukoil.” These measures were aimed at influencing Putin’s position regarding a ceasefire with Ukraine. Restrictions against the two largest players in the Russian energy market could significantly reduce the Kremlin’s budget revenues from oil exports. Additionally, among the potential measures, the imposition of sanctions against Russia’s shadow fleet and additional tariffs on the purchase of Russian oil, particularly for China, were considered.
Changes in the Oil Market and Reactions from India and China
After Trump imposed a 25% tariff on India and expressed willingness to increase it to 50% in case of further support for Russia, discounts on Russian Urals oil have significantly increased. As of mid-August, the discount on Urals compared to the benchmark Brent oil at the Baltic port of Primorsk reached $12.16 per barrel, exceeding the end of July figure by $0.20. In Indian ports, the price difference rose from $2.04 to $2.61 per barrel. For China, which purchases ESPO grade oil, discounts increased from $3.75 to $4.81 per barrel compared to Dubai grade.
Under the influence of the new discounts, Indian refineries have begun to reconsider the possibility of resuming purchases of Russian oil, which were halted due to the imposition of American tariffs. At the same time, the increase in the discount on Russian oil may lead to a significant reduction in the federal budget revenues of the Russian Federation.