Putin Condemns US Sanctions on Russia’s Oil Industry, Warns of Global Fallout

United States and European Union unleashed a barrage of sanctions on Russia’s critical oil sector Thursday, aiming to choke the financial lifeline fueling Vladimir Putin’s invasion of Ukraine. President Donald Trump’s administration led the charge, targeting giants Rosneft and Lukoil—cornerstones of Russia’s economy—for their role in bankrolling the nearly four-year war. The EU followed with its 19th sanctions package, banning Russian liquefied natural gas (LNG) imports and tightening restrictions on Moscow’s shadowy fleet of sanction-dodging tankers. Putin slammed the U.S. move as an “unfriendly act,” warning of skyrocketing global oil prices that could sting American consumers.

The U.S. sanctions, set to kick in on November 21, hit Russia’s oil exports, which account for over 5% of global supply. Putin, speaking in Moscow, acknowledged “certain consequences” but downplayed their economic impact, insisting Russia’s resilience will hold. “A sharp reduction in our oil exports will spike prices worldwide,” he cautioned, predicting pain at U.S. gas pumps. Crude prices already surged over $2 per barrel Thursday, with analysts forecasting a potential 5% jump soon. Chris Weafer of Macro-Advisory Ltd. noted a 30-day window before enforcement, suggesting it’s a chance for Putin to rethink his stance. “Asian buyers are frantically chartering tankers to grab Russian oil now, boosting Moscow’s budget temporarily,” Weafer said from London.

The EU’s measures amplify the pressure, banning LNG imports and adding 100 more vessels to a blacklist of 557 Russian “ghost fleet” tankers evading sanctions. Additional curbs target Russia’s cryptocurrency transactions, AI and computing services, and exports of military-use components like electronics, chemicals, and metals. A new restriction limits Russian diplomats’ movement within the 27-nation bloc to counter espionage. Ukrainian President Volodymyr Zelenskyy, speaking in Brussels, hailed the moves: “We waited for this. God bless—it will work.” Kyiv has long pushed for harsher penalties as Russian forces advance along a 1,000-kilometer front and pound Ukraine’s power grid ahead of winter.

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Energy remains Russia’s economic backbone, funding Putin’s military without triggering inflation or ruble collapse. The sanctions aim to disrupt this, but their impact is uncertain. Russia has weathered economic isolation before, though strain is showing. The U.S. measures carry secondary penalties, threatening buyers like China and India, who dominate Russian oil imports. Weafer predicts short-term gains for Moscow as buyers stockpile, but long-term challenges loom if enforcement tightens.

Tensions between Trump and Putin, once seen as a diplomatic bridge, have soured. Trump shelved a proposed Budapest summit, calling it a “waste of time” as Putin refuses to soften demands for Ukrainian territory. “Dialogue is better than confrontation, but it must yield results,” Putin said, accusing Washington of coercive tactics. He also warned of a “stunning” response if Ukraine uses Western-supplied long-range missiles, like British Storm Shadows, for deep strikes into Russia—a capability Zelenskyy seeks, with hints of U.S. approval.

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