WEB DESK: U.S. President Donald Trump imposed sanctions on Russia’s two largest oil companies in a significant policy shift addressing Moscow’s ongoing war in Ukraine. This move caused global oil prices to rise by 3% on Thursday and led India to reconsider its imports of Russian oil.
The U.S. Treasury announced its sanctions targeting the oil giants Rosneft and Lukoil, signaling a notable departure from Trump’s prior position. Just last week, Trump had mentioned plans for a summit with Russian President Vladimir Putin in Budapest aimed at ending the conflict in Ukraine.
However, on Wednesday, Trump abruptly canceled the summit, expressing doubts about its potential to achieve meaningful results. He remarked on his many “good conversations” with Putin that had ultimately proved fruitless.
While addressing reporters at the White House, Trump explained his decision: “The meeting with President Putin didn’t feel right to me. It didn’t seem like it would lead us to where we need to be. So I called it off, but we hope to arrange it in the future.”
U.S. Treasury Secretary Scott Bessent emphasized that Washington was prepared to escalate its measures and was targeting Russia’s ability to finance the war initiated in February 2022.
Scott Bessent said , “With President Putin’s refusal to end this senseless conflict, Treasury is imposing sanctions on Russia’s largest oil companies that directly fund the Kremlin’s military efforts. We urge our allies to align with us and comply with these sanctions.”
In response, Russia’s Foreign Ministry labeled the sanctions as “counterproductive” for facilitating peace talks and declared that Moscow’s objectives in Ukraine remain unchanged.
Ukrainian President Volodymyr Zelenskiy welcomed U.S. sanctions, recognizing them as “very important” but stressed that additional pressure on Moscow was essential.
Oil prices surged over 3% on Thursday, fueled by concerns over supply disruptions tied to the new sanctions. Indian sources within the oil industry revealed that local refiners are poised to significantly reduce imports of Russian oil to adhere to U.S. regulations.
India has become the leading importer of discounted Russian oil after Western nations imposed sanctions and ceased purchases following Russia’s invasion of Ukraine in 2022.
The U.S. Treasury has provided companies a deadline until November 21 to conclude their dealings with the sanctioned Russian oil producers.
