U.S. President Donald Trump imposed sweeping sanctions on Russia's Rosneft and Lukoil. Oil prices surge, sending Brent crude to a two-week high. Image: Fox Business.
(The Post News) – Oil prices spiked on Thursday following the imposition of fresh sanctions by US President Donald Trump on Russia’s biggest oil majors, Rosneft and Lukoil. The move is intended to pile pressure on Vladimir Putin to end the war in Ukraine.
Brent crude jumped 4.9% to $65.65 a barrel, its two-week high, following the news. Shares in Shell and BP also rose almost 3%, the strongest performers on London’s FTSE 100.
Trump: “These Are Tremendous Sanctions”
Trump called the measures “tremendous” in remarks at the Oval Office. “These are really big ones against their two big oil companies,” he stated. “We hope that they won’t be on for long. We want the war to end.”
The measures freeze Rosneft and Lukoil assets in the US and bar American persons and entities from conducting any business with them. The US Treasury further warned that foreign banks doing business with the two firms could face secondary sanctions, affecting Chinese, Indian, and Turkish financial institutions.
Indian refiners are already preparing to cut Russian crude imports. Reliance Industries, India’s biggest Russian oil importer, plans to cut purchases or halt them entirely, according to Reuters sources.
India has been one of the largest purchasers of low-cost oil from Moscow since the conflict began. Trump placed 50% tariffs on most Indian exports in August to sanction New Delhi for its continuation of trade with Russia.
The UK sanctioned Rosneft and Lukoil last week, and the EU banned Russian liquefied natural gas (LNG) imports on Thursday.
US Treasury Secretary Scott Bessent said Washington is “prepared to take additional action” if Moscow fails to end the war.
“Despite President Putin’s refusal to suspend this senseless war, the Treasury is taking action against Russia’s two largest oil companies that are bankrolling the Kremlin war effort,” Bessent said.
Fighting Intensifies
As sanctions escalate, fighting erupts along the Russia-Ukraine border. Blackouts, sirens, and gunfire become routine for Belgorod residents, a Russian region bordering Ukraine, as Ukrainian drones and rockets shell energy facilities.
In September, over 4,000 drone attacks were launched by Ukrainian forces in Belgorod, up from 1,100 in January, BBC News Russian said.
President Volodymyr Zelensky says the attacks are retaliation for Russia’s shelling of Ukrainian cities. “If they want to remain without power, then we will do it too,” Zelensky warned.
Locals at the ground level speak of endless nights spent in darkness as power stations and substations are targeted repeatedly. Shortages of fuel have risen, pushing the price of generators higher across the region.
Trump cancelled a planned summit with Vladimir Putin, saying the timing “didn’t feel right.” He went on to say that one could be arranged in the future if Moscow “shows a real desire for peace.”
Ukrainian Ambassador Olga Stefanishyna welcomed the sanctions, terming them as “a powerful signal that peace is possible only through strength.”
Experts believe the full effect of the sanctions will hinge on whether the White House implements secondary restrictions on foreign companies selling Russian oil. “These are the most significant sanctions since the beginning of the war,” said Eddie Fishman of the Atlantic Council. “The real question is whether Washington will follow through.”
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