MOSCOW, Oct 23 – Washington has escalated its stance on Moscow’s war in Ukraine, imposing tough sanctions on Russia’s two largest oil producers, Rosneft and Lukoil. The move, announced by President Trump, marks a sudden policy reversal and has already triggered ripples across global markets, pushing oil prices up by nearly 5%. The decision has also sent shockwaves through India, one of the biggest importers of Russian crude, as New Delhi weighs the risks of continuing purchases amid tightening U.S. restrictions.
Only a week earlier, Trump had hinted at an upcoming summit with Russian President Vladimir Putin in Budapest to discuss possible peace efforts. But in an unexpected shift, the U.S. leader said that meeting was now canceled, citing dissatisfaction with recent diplomatic progress. Trump told reporters at the White House that he had called off the meeting with President Putin because “it didn’t seem appropriate right now,” adding that “we weren’t getting to the point we needed to reach, so we’ll look at rescheduling when the time is right.”
Russia Shrugs Off Sanctions, Calls Them Counterproductive
Moscow dismissed the new sanctions as ineffective and counterproductive, signaling that its position on Ukraine remains unchanged. Russian officials said the restrictions would not alter the country’s military or political objectives and instead accused Washington of undermining diplomatic efforts. Foreign Ministry spokeswoman Maria Zakharova said Russia had built a “strong immunity” to economic pressure and was ready to respond firmly if the United States or its allies seized Russian assets abroad.
The sanctions target companies that together account for over 5% of global oil production, aiming to cripple one of Moscow’s key revenue sources for funding its war campaign. U.S. Treasury Secretary Scott Bessent emphasized that the objective was to reduce the Kremlin’s ability to sustain the conflict, calling the move part of Washington’s broader effort to pressure Russia’s economy. “Since President Putin refuses to bring this war to an end, we are now cutting off the crucial financial channels that sustain the Kremlin’s military efforts,” Bessent said.
Russia’s energy sector remains vital to its economy, contributing roughly a quarter of its national budget despite declining revenues. Although the new sanctions are expected to disrupt exports and logistics, experts believe the immediate financial hit may be limited since Moscow’s revenue primarily depends on production taxes rather than direct export earnings. Still, Lukoil announced it was canceling its board meeting scheduled for Thursday, citing the “new circumstances” created by the sanctions.
Meanwhile, the conflict continues to rage. Russian drones attacked Kyiv for a second consecutive night, wounding several civilians, while Moscow’s defense systems claimed to have intercepted dozens of Ukrainian drones. In Brussels, European Union leaders and Ukrainian President Volodymyr Zelenskiy met to discuss long-term financial support for Kyiv, with proposals to use frozen Russian assets as collateral for a massive loan package worth approximately 140 billion euros.
India Faces Dilemma Amid Rising Oil Prices
The sanctions have created a ripple effect far beyond Russia and Europe. India, now the largest buyer of Russian seaborne oil sold at a discount, is facing renewed scrutiny over its imports. Indian refineries have reportedly begun considering a reduction in Russian crude purchases to avoid potential secondary sanctions from Washington. The U.S. Treasury has given companies until November 21 to complete or terminate transactions with Rosneft and Lukoil.
The sanctions announcement caused global oil prices to spike 5% on Thursday, stirring concern among major importers. Energy analysts believe Moscow might be forced to sell oil at deeper discounts to maintain its market share, although the financial impact could be softened if prices continue to rise. The uncertainty has left India in a difficult position as it tries to balance economic interests with growing diplomatic pressure from the West.
President Zelenskiy expressed gratitude to Washington for tightening the sanctions, calling them “an important step” toward compelling Moscow to negotiate. However, he stressed that continued pressure would be necessary to bring Russia to the table. “We need sustained action,” Zelenskiy said, “not just temporary measures.”
Trump’s Renewed Call for Ceasefire and Growing Friction with Moscow
President Trump’s stance on Ukraine has shifted repeatedly over recent months. Following a meeting with Putin in Alaska earlier this year, Trump appeared to support Russia’s preference for comprehensive peace talks instead of an immediate ceasefire. However, his recent comments indicate another reversal, with the U.S. leader now urging an immediate cessation of hostilities. “It’s time for both sides to stop the bloodshed and talk seriously about peace,” Trump said during his latest address.
Moscow, however, has shown little interest in halting its offensive, arguing that a ceasefire would merely allow Ukraine to regroup and rearm. Russian officials insist that only a full peace settlement based on their terms could bring what they call a “lasting resolution.” Kyiv, on the other hand, rejects these conditions as an attempt to force territorial concessions. Zelenskiy has repeatedly maintained that Ukraine will not accept any deal that undermines its sovereignty.
Russia further escalated tensions by conducting large-scale nuclear readiness drills, a move widely interpreted as a warning to the West. Former Russian President Dmitry Medvedev reacted furiously to the sanctions, calling Trump’s actions “an act of war.”