Putin Defiant as New US Sanctions Target Russian Oil, Global Repercussions Expected

Summary Putin Defiant as US Sanctions Target Russian Oil; Global:

In a significant escalation Energy Landscape of economic pressure, the United States has imposed new Shifts

Inneft and Lukoil, aiming a significant development impacting global energy markets and to curb the Kremlin’s war funding. international relations, Russian President Vladimir Putin has declared that This move, the first since Donald Trump Russia will not succumb to US pressure, despite acknowledging potential economic repercussions’s return to the White House, seeks to compel Russia to negotiate an end to the conflict from new sanctions. These measures, imposed by the Trump administration, specifically target Russia’s major oil producers, Rosneft and Lukoil, in an intensified effort to halt the ongoing in Ukraine. The conflict in Ukraine. The sanctions, which collectively affect European Union has also joined in, implementing nearly half of Russia’s crude exports, mark a renewed push a phased ban on Russian liquefied natural gas and adding two Chinese from Washington to curtail the Kremlin’s vital oil revenues that fuel its war machine.

The immediate aftermath of these sanctions has oil refiners to its sanctions list for their dealings with Moscow. These stringent Russian oil sanctions account for nearly half of Russia’s crude exports and have already triggered a seen a 5% surge in global oil prices, reflecting the market’s sensitivity to disruptions in Russian supply. Crucially, early indications suggest a shift in purchasing patterns from Russia’s two largest energy customers, China and India. India’s Reliance Industries,5% increase in global oil prices a major buyer of Russian oil.

Russian President Vladimir Putin has denounced the US sanctions as an “unfriendly act,”, has hinted at a potential reduction or temporary halt in purchases, while China’s state-owned oil companies have reportedly suspended seaborne Russian crude purchases acknowledging that, at least in the short term, due to concerns about complying while they won’t with the new regulations.

Putin, significantly impact Russia, “some losses are expected.” He while dismissing the sanctions as an “unfriendly act also warned of a “very strong” response if Russia” and futile attempt to exert pressure, conceded that “some losses were to be targeted with US Tomahawk cruise are expected.” He also issued a stark warning regarding missiles. The sanctions’ the potential use of US Tomahawk cruise missiles immediate impact is against Russia, v evident, with India’s Relianceowing a “very strong, if not Industries, a overwhelming” response. The EU has major Russian oil buyer also taken steps, agreeing to a phased ban on Russian liquefied natural gas and adding two Chinese oil refiners to its sanctions list, prompting, hinting at reduced strong purchases, and China’s state protests from Beijing-owned oil companies reportedly suspending seaborne crude imports. These nations.

This, previously resistant to Western pressure due to access evolving situation underscores the intricate interplay of geopol to discounted Russian crude, are now reconsidering their positionsitics and energy economics. Russia’s oil and to avoid being cut off from the Western gas sector accounts for a substantial portion of its GDP, making financial system.

a significant reduction in demand from its primary buyers a potentiallyThe oil devastating blow. While Moscow has a and gas sector constitutes a fifth of Russia’s GDP, making a substantial drop in history of circumventing Western sanctions through opaque trading schemes and its demand from its primary buyers a potentially “shadow fleet,” devastating blow to Moscow the extensive’s revenues. While some Kremlin-linked experts concede reach of US sanctions could make continued trade with Russia too risky for many companies, who prioritize access to the broader Western financial system. The coming the sanctions could hurt, others maintain Russia’s ability to adapt weeks will reveal how effectively Russia can through alternative trading schemes adapt and how strictly these new and its sanctions will be enforced, ultimately shaping the trajectory “shadow fleet” of the Russian economy and the global energy landscape. network, which has historically circumvented Western restrictions. However, the far-reaching nature of US sanctions, coupled with the risk of secondary sanctions, presents a formidable challenge for companies considering continued trade with Russia. The effectiveness of these measures will largely hinge on their strict enforcement, with global attention now focused on how Russia and its trading partners will navigate this evolving

source: https://www.theguardian.com/world/2025/oct/23/putin-says-he-will-never-bow-to-us-but-concedes-sanctions-may-cause-some-losses