Trump Sanctions Russia’s Oil Giants Rosneft and Lukoil: Global Fallout Begins
America ı By Jackie Allen
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In a bold move that has sent shockwaves through global energy markets, President Donald Trump announced new sanctions on Russian oil giants Rosneft and Lukoil, escalating economic pressure on Vladimir Putin’s war machine. The measures, unveiled Wednesday night, mark the first major Trump sanctions of the new term.
They are being described as some of the toughest sanctions and are aimed at Russia’s lucrative energy sector.
See related coverage on Reuters
Putin Condemns Trump Sanctions as “Unfriendly Act”
Russian President Vladimir Putin blasted the Trump sanctions as “an unfriendly act,” claiming the move would not damage Russia’s economy. Speaking to the Russian Geographical Society, Putin said, “Dialogue is better than war,” adding that global markets would “need time to adjust.”
But Western analysts disagree. “His market is diminished,” said Greg Newman, CEO of Onyx Capital Group. “I think it’s the same Trump strategy of maximum pressure that was used against Iran in his previous term, and I think it will be effective.”
Tom Keatinge, director of the Centre for Finance and Security at RUSI, also said China’s reaction was pivotal: “There’s a sense that the wind has changed direction and there is a heightened risk that the White House will now follow through on its sanctions decisions by going after those that continue to buy.”
China and India Retreat from Russian Oil
The sanctions have already triggered a wave of global reactions. Four major Chinese oil companies, PetroChina, Sinopec, CNOOC, and Zhenhua Oil, suspended purchases of Russian seaborne oil to avoid secondary penalties. Meanwhile, Indian refineries announced plans to cut imports of Russian crude.
“If cancellations prove permanent, Moscow faces a serious economic hit,” analysts told The Telegraph, calling it a “clear victory” for Trump’s sanctions regime.
Though China continues to import roughly 1.4 million barrels per day, most of it is handled by smaller, independent “teapot” operators that may still test the limits of the new restrictions.
European Allies Step Up Pressure
The European Union announced its own new sanctions in coordination with Washington, including a phased ban on liquefied natural gas imports and tighter restrictions on Russian diplomats and shipping. German Chancellor Friedrich Merz said he is confident European leaders will approve a $140 billion loan to Ukraine using frozen Russian assets, despite objections from Belgium.
NATO Secretary General Mark Rutte said the coordinated move was about “changing the calculus” and pushing the Kremlin back to negotiations. “These sanctions are the result of difficult but necessary discussions,” Rutte said after meeting Trump in Washington.
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