Thu, 23 Oct 2025

Thu, 23 Oct 2025 What's the significance of US sanctions on Russian oil?

The new measures target Moscow's ability to fund its war machine, the US Treasury said.
The sanctions are seen as a significant moment in the Trump administration's efforts to address the conflict in Ukraine, with the US and its allies previously hesitant to restrict the Russian energy industry due to concerns about the wider economic impacts. US Treasury Secretary Scott Bessent says the measures target Russia's "war machine" and aim to reduce funding for Moscow's military operations. The sanctions will likely have a significant impact on Russia's economy, which is already struggling, but analysts are divided on whether they will be enough to prompt Putin to reconsider his position in Ukraine. The move has been seen as symbolic as well as economic, with Trump having previously pinned his hopes on brokering a peace deal. Two former US ambassadors to Ukraine suggested that the significance of the sanctions remained to be seen in the long term and that major pressure would need to be maintained for many months to push Putin into negotiations. The sanctions will also have ripple effects beyond Russia's economy, with oil and gas being its biggest exports. China and India, two of Russia's largest customers, are already considering reducing their purchases from Rosneft and Lukoil in response to the US measures. Global oil prices have surged in response to the news, but analysts expect the impact on prices to be short-term unless secondary sanctions on shipping and finance related to the companies come into effect.
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