The United States has hit Russia's two largest oil companies, Rosneft and Lukoil, with sweeping sanctions in a major escalation of pressure over Moscow's ongoing war in Ukraine. This has caused global oil prices to spike by more than 3% on Thursday.
Trump framed the sanctions as a response to Russian President Vladimir Putin's refusal to end the "senseless war" in Ukraine. US Treasury Secretary Scott Bessent said the sanctions target the Kremlin's ability to fund the conflict, urging allies to follow suit.
The White House gave companies until November 21 to wind down dealings with the Russian oil producers. Rosneft, controlled by Putin ally Igor Sechin, and Lukoil together export over 3 million barrels of oil per day, accounting for roughly 6% of global output.
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These sanctions could force Russia to sell oil at deeper discounts. However, Russia responded by dismissing the sanctions as "counterproductive," with former President Dmitry Medvedev likening the United States move to "an act of war."
The decision also complicates India's energy strategy. Indian refiners, among the world's largest buyers of discounted Russian oil, are now reviewing imports to comply with the sanctions, raising concerns about supply disruptions and potential higher costs.
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Zelensky welcomed the sanctions but emphasized that further international pressure would be needed to secure a ceasefire. Meanwhile, EU leaders are meeting in Brussels to discuss turning frozen Russian assets into a potential €140 billion aid package for Kyiv.
Ultimately, experts suggest the sanctions are more likely to influence Russian calculations politically than change the military situation in Ukraine. "They signal to Moscow that the international community is serious, but they won't immediately alter the battlefield."