US Sanctions on Russian Oil Companies
US Treasury Secretary Scott Besant has confirmed that the government is imposing sanctions on Russia's largest oil firms, Lukoil and Rosneft. He also insisted that the action was meant to stem Russia's relentless pursuit of war. The sanctions have also targeted dozens of firms owned by these firms. Besant also insisted that the two firms are funding the war efforts and that the US is willing to do more if needed.
EU's Wider Economic Sanctions
The European Union thus retaliated by putting Russia's economy under additional sanctions. The new sanctions include Russian liquefied petroleum gas (LPG) export prohibition to EU countries. The sanctions further include 557 "shadow" oil tankers and Russian envoys to the EU. To guard against sanction evasions by Russia through cryptocurrency, the EU has decided to ban Russian payment cards and affiliated systems.
The EU list of sanctioned companies contains 45 companies, of which three are Indian — Aerotrust Aviation Private Limited, Ascend Aviation India Private Limited, and Shree Enterprises. Twelve more Chinese companies have also been sanctioned. Exporting electronic, chemical, and metal components involved in the manufacture of weapons has been banned by the EU. Crude oil prices globally increased by $2 a barrel after these announcements.
Ukraine Welcomes the Action
Ukrainian President Volodymyr Zelensky described the sanctions as a brilliant diplomatic triumph. In his view, his government had been urging global leaders to get tough on Russia. In making his Brussels announcement, Zelensky embraced the action and stated, "These sanctions are very important and will have effects." He also urged other countries to join forces in an effort to hold Russia accountable.
Putin's Reaction to Sanctions
Russian President Vladimir Putin claimed that the US-imposed sanctions were an effort to push his country out. He also added that Russia would not be intimidated by external pressure and would be strengthened instead. Putin warned that the sanctions would ultimately drive crude oil prices higher, and American consumers would be hurt by it. Speaking at the 17th Russian Geographical Society conference in Moscow, he also warned Western nations against giving Ukraine the long-range missiles like the Tomahawk. He further said that his meeting with Trump, which was earlier scheduled for October 16 in Budapest, has been postponed and not called off. Putin added and said that Russia likes to negotiate, not battle.
India's Oil Imports from Russia
Trump informed that India has agreed to end Russian oil purchasing by the end of the year. Trump said it would be a long process but would be completed before the end of the year. Trump discussed future planned action to put China, another big Russian oil purchaser, in the same position.
Trump, at the White House, said, "India has said it will stop buying oil from Russia.". It's something that will take time to happen, but it will get done by the end of the year. I did have a Tuesday call with the Indian Prime Minister." He added that during the meeting he would have with Chinese President Xi Jinping, they would determine to put an end to Russia-Ukraine's war. According to his words, previous US administrations pushed China and Russia together, although they weren't natural allies.
India's Official Response
The Indian government had denied Trump's assertion of having a phone call with Prime Minister Narendra Modi. External Affairs Ministry spokesperson Randhir Jaiswal clarified, "There was no phone conversation between Prime Minister Modi and President Trump on oil issues." He asserted that India's policy is to focus on supplying reasonably priced and stable sources of energy to the country.
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