US imposes tough sanctions on Russian oil industry
The US is upping the pressure on Russia's oil industry: Donald Trump has imposed sanctions on its two top companies Rosneft and Lukoil and their numerous subsidiaries. According to the US Treasury Department, not only US companies but also foreign banks and business partners will now be prohibited from doing business with them. The media discuss whether this could force Putin to back down on Ukraine.
Trump in a vengeful mood
La Repubblica comments:
“Donald Trump continues to be torn between his fatal attraction to Putin (coupled with his obvious dislike of Zelensky) and the frustration of feeling mocked by the tsar every time he thinks he has convinced him. Now the American president seems to be in the mood for revenge. The 'tremendous sanctions' against Rosneft and Lukoil, the two Russian oil giants, aimed at degrading the Kremlin's ability to "raise funding for its war machine", as Treasury Secretary Scott Bessent has said, are the Trump administration's first retaliatory measures against the Kremlin. Not even Joe Biden went that far. He always avoided targeting Rosneft and Lukoil for fear of driving up energy market prices.”
Painful for the state budget
Meduza expects the sanctions to hit hard:
“It's unlikely that the US sanctions will succeed in removing Russian oil from the market. Otherwise, the world risks triggering a price shock - and not even the US would want that. A more realistic scenario is a reduction in Russia's market share and a decline in its oil and gas revenues. These account for about a quarter of the federal budget - and given the fact that the government is already having problems filling the state coffers, any new and effective sanctions could have a painful impact on the state of the economy.”
Further steps could be game changers
According to the Tages-Anzeiger, Trump could even go one better:
“The sanctions imposed by the US hit Russia where it hurts. ... But the Russian economy is not in danger of sudden collapse. These sanctions are not enough for that. ... However they are a significant first step. If Donald Trump really wants to end the war, he would have to take the second, decisive step and enact the 'Sanctioning Russia Act of 2025', which has been stuck in the US Congress for months. This act contains the most aggressive sanctions against Russia to date, including high punitive tariffs on all imports from countries that knowingly purchase Russian oil. This would be the game changer that could finally force Putin to come to the negotiating table.”
EU and US working as a team
The combination of US sanctions and the Europeans' latest sanctions package will be highly effective, political scientist Victor Taran says on Facebook:
“The ban on imports of Russian liquefied natural gas shows that the Europeans prioritise safety over cheap gas. Another important point is the synchronisation of measures with the US. The US Treasury Department has simultaneously tightened sanctions against Russian energy companies and intermediaries in China, Turkey and the United Arab Emirates. This creates a 'vicious circle' which not only restricts the flow of Russian exports to the EU but also closes their global bypass channels.”
Patience needed now
De Standaard worries that Trump may not actually implement and maintain his new hard line against Moscow:
“US President Donald Trump finally seems to have realised that Vladimir Putin will only engage in serious negotiations if he is put under pressure with tough sanctions. Hopefully, clever (European) politicians will succeed in making the US President realise that his measures will not lead to a breakthrough overnight. No one can predict when the pressure on the Russian war machine will lead to a collapse. Trump must be patient this time and make sure that his sanctions go beyond a publicity stunt and are actually enforced.”