Topline
Global oil prices spiked early on Thursday after President Donald Trump’s administration imposed a new set of sanctions targeting Russia’s two largest oil companies, Rosneft and Lukoil, and threatened further action unless Moscow agreed to a ceasefire in its ongoing war with Ukraine.
The U.S. sanctions target Russia’s two biggest oil firms and their subsidiaries.
AFP via Getty Images
Key Facts
The global benchmark Brent Crude Futures rose more than 5.3% to nearly $66 per barrel early on Thursday morning.
The U.S. benchmark West Texas Intermediate Futures also rose 5.4% to $61.69 per barrel.
Treasury Secretary Scott Bessent said the sanctions target Russia’s two largest oil firms “that fund the Kremlin’s war machine” and warned he is prepared to take “further action if necessary to support President Trump’s effort to end yet another war.”
Rosneft and Lukoil were hit by U.K. sanctions last week, and the European Union on Wednesday approved a fresh package of sanctions that includes a ban on Russian liquefied natural gas (LNG) imports.
What Do We Know About India’s Purchases Of Russian Oil?
According to Bloomberg, Indian purchases of Russian crude oil are expected to drop to nearly zero after the latest round of sanctions imposed by the U.S. Russia has been India’s biggest oil supplier since 2023, a matter that has triggered trade tension between New Delhi and Washington. However, the latest sanctions against Russia’s two biggest oil companies would make such large import flows nearly impossible, the report added, citing unnamed senior executives at Indian refineries. Reuters also reported that India’s state-owned refineries are reviewing Russian oil purchases to ensure that no supplies are coming directly from Rosneft and Lukoil. Trump, who has imposed a heavy tariff of 50% on India due to its Russian oil imports, said Indian Prime Minister Narendra Modi had assured him that Delhi “was not going to buy much oil from Russia.”
Crucial Quote
The Treasury’s statement added: “The United States will continue to advocate for a peaceful resolution to the war, and a permanent peace depends entirely on Russia’s willingness to negotiate in good faith. Treasury will continue to use its authorities in support of a peace process.”
What Has Trump Said About The Sanctions Against Russia?
The sanctions were announced while the President met with NATO’s secretary general, Mark Rutte, at the Oval Office. When asked about the sanctions by reporters, Trump said, “Look, these are tremendous sanctions. These are very big. Because they’re against their two big oil companies and we hope that they won’t be on for long. We hope that uh the war will be settled.” Trump was set to have a face-to-face meeting with his Russian counterpart, Vladimir Putin, in Hungary to discuss a potential ceasefire in the Ukraine war, but this was called off. On Wednesday, Trump told reporters, “We canceled the meeting with President Putin — it just didn’t feel right to me. It didn’t feel like we were going to get to the place we have to get. So I canceled it, but we’ll do it in the future.”
Further Reading
India’s Russian Oil Bounty Dries Up as Sanctions Toughen (Bloomberg)
Trump levies new sanctions on Russian oil giants in a push on Putin to end Ukraine war (Associated Press)
Source: https://www.forbes.com/sites/siladityaray/2025/10/23/global-oil-prices-surge-5-after-trump-slaps-sanctions-on-russian-oil-firms/
