Impact on key companies
President Trump's administration imposed sanctions on key Russian oil companies, Rosnieft and Łukoil, arguing this with Russia's insufficient commitment to resolve the conflict in Ukraine. According to CNBC, the intent of the fresh restrictions is to influence the Russian economy. Washington considers oil to be a key component of the Russian economy, and the sanctions introduced are intended to cut off this origin of income. The administration justifies this step without Russia's serious commitment to the peace process in Ukraine.
This decision immediately sparked an increase in oil prices. On the evening of Wednesday, Brent's planet benchmark rose by $1.83, or nearly 3%, reaching $64.42 per barrel. A akin jump was recorded in the US, where oil increased by $1.74 (almost 3%), to a level of $60.24 per barrel.
The imposition of sanctions was accompanied by a message by U.S. Treasury Secretary Scott Bessent, who indicated that the time had come to halt force and to immediately introduce a ceasefire.
Europe joins
The European Union immediately supported the fresh sanctions, strengthening control over Russian oil imports and eliminating its legal ability to circumvent it in maritime transport. Brussels stresses that "the Western Soyote forms a united front".
In the context of the announcement of sanctions, Trump met with NATO Secretary-General, Mark Rutte. The president of the United States revealed that he had cancelled the planned summit with Vladimir Putin due to the fact that he “did not want to waste his journey.” Rutte, who publically supported Trump, called him “the only 1 who can do so”.
Role of China
Analysts propose that China can play a key function utilizing its influence on Russia during forthcoming trade talks between president Trump and Xi Jinping.
According to the British Sky News station, the sanctions imposed by the president of the United States are more complex than a specified punishment; they are a strategical effort to force president Putin to compromise, however, this is simply a very tiny margin for error.
Experts inform that if oil prices go up or the unity of allies is compromised, the president of the United States may find himself in a hard situation.
