War in Europe

Trump, Russian oil sanctions on Rosneft and Lukoil

The US president: 'Time to end the conflict in Ukraine, talks with Putin are useless'. And he will ask Xi Jinping to convince the Kremlin

by Luca Veronese

Donald Trump durante l’incontro alla Casa Bianca con il segretario generale della Nato, Mark Rutte

4' min read

Translated by AI
Versione italiana

4' min read

Translated by AI
Versione italiana

A direct blow to Russia's oil to force Vladimir Putin to negotiate peace in Ukraine. In his volatile strategy on the war in Europe, Donald Trump has decided to impose new sanctions against Rosneft and Lukoil, Russia's two main oil companies, accusing the Kremlin of 'not doing enough to end the conflict'.

The tension between Washington and Moscow is escalating: the summit between Trump and former friend Putin that was supposed to lead to a breakthrough in the war has been cancelled. And in the same hours that the new sanctions were announced, the Russian armed forces were flexing their muscles with a massive military exercise, in which intercontinental missile launches, capable of carrying nuclear warheads, were also tested.

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"Talks with Putin lead nowhere"

"Every time I talk to Vladimir, I have nice conversations and then they go nowhere, they simply don't go anywhere. The talks are always positive but they lead nowhere," the US president reiterated while meeting, in the Oval Office of the White House, with Nato Secretary General Mark Rutte. "I cancelled the meeting with Putin, we will do it in the future, when the war is resolved," Trump said again, confirming the ongoing clash and the futility, at this stage, of the summit that was supposed to be held in Hungary.

The move marked an abrupt turnaround for the White House, which in recent months has oscillated between pressure and even threats against Moscow and a more conciliatory approach with Putin to achieve peace in Ukraine. Acting in an equally unpredictable manner towards the Ukraine of Volodymyr Zelensky: first shouted down in worldvision by the House Bank, then treated as a great leader, then deluded with the promise of long-range Tomahawk missiles, then again rejected and attacked, albeit not live, at the last summit in Washington.

Zelensky: proposta Trump su attuale linea fronte è un buon compromesso

Moscow's finances blocked

For months, Trump has resisted congressional pressure to impose sanctions on the Russian energy industry, hoping that Putin would agree to end the fighting. Even last week Trump seemed ready to further postpone the new measures against Moscow. But something must have changed, in the face of the impasse and in the memory of the face-to-face meeting with Putin in Anchorage, Alaska, last August: with pats on the back, promises and handshakes between the two leaders that subsequently did not lead to any concrete results. "These are very heavy sanctions, enormous. And let's hope they don't last long. Let's hope the war ends," remarked Trump, always flanked by Rutte, who also flew to Washington to coordinate the White House's initiatives with the plans of the European allies.

 The U.S. Treasury Department said that Russia's two largest oil companies, Rosneft and Lukoil, will be hit in an effort to block Moscow's ability to finance its war machine."Now is the time for a halt to the killing and an immediate ceasefire," said U.S. Treasury Secretary Scott Bessent. "Putin has not come to the negotiating table as honestly and directly as we had hoped, President Trump was very disappointed," Bessent explained.

State-controlled Rosneft, led by Putin's close ally Igor Sechin, and privately-owned Lukoil are Russia's two largest oil producers, together accounting for almost half of the country's total crude oil exports, according to Bloomberg estimates.

From the West, coordinated action against Russia

It is difficult to predict what impact the saznions will have on the Russian economy and Moscow's choices. Joe Biden's administration had imposed saznions against Russia in several rounds without budging Putin from his war strategies.

The UK has already put Rosneft and Lukoil under sanctions, increasing pressure on buyers such as Indian refineries. The EU is preparing to introduce a new package of measures against Moscow that should block imports of Russian liquefied natural gas.

"With the US action, you get coordination that could significantly increase the outlets for Russian oil," explains Kevin Book, managing director of Washington-based ClearView Energy Partners. "This," he adds, "is really the first positive and significant step of Trump 2.0 on Russian oil.

The war continues, Putin wants the whole Donbass

 On Putin's orders, Russian military forces invaded Ukraine in February 2022. The Moscow and Ukrainian armies continue to bomb cities, hit infrastructure, including energy infrastructure, with drone attacks. Since the beginning of the conflict - according to analyses by independent institutes - up to 100,000 Ukrainian soldiers and probably at least 900,000 Russian soldiers have died, while the UN estimates the civilian death toll at at least 50,000.

In the past few days Putin, together with his close associates, has reiterated to the United States - according to the Reuters agency - his conditions for reaching a peace agreement: starting with the control of the entire Donbass, the south-eastern Ukrainian region. A demand that rejects, in fact, Trump's statement last week, according to which both sides would have to stop at the current front lines.

Salta l'incontro Usa-Russia, Trump: "Non voglio perdere tempo"

The US, NATO and the Chinese side

According to NATO Secretary Mark Rutte, the United States has confirmed its willingness to contribute to the security of Ukraine. "I cannot go into details but President Trump has stated that he is willing to have the United States participate in security for Ukraine," Rutte said after meeting with the US president at the White House.

Trump, more than on Europe, seems to be looking to China as a possible shore to achieve peace in the Ukraine. "I will meet Xi Jinping in South Korea," said Trump, confirming the summit, repeatedly questioned, that should halt the escalation between the two great global powers, on trade as on rare earths. "I think Xi can have a great influence on Putin. And," assured the US president, "we will certainly talk about Russia and the Ukraine as well

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