Russian President Vladimir Putin has rejected with defiance to the new round of US sanctions targeting the country’s two largest oil companies, Rosneft and Lukoil.
Speaking to reporters in Moscow, Putin condemned the measure as an “unfriendly act” but insisted the restrictions would not significantly impact the Russian economy or compel Moscow to alter its policy on the Ukraine war.
The US Treasury Department announced the sweeping sanctions this week, freezing all US assets of the two oil giants and threatening secondary sanctions on foreign financial institutions that continue to do business with them.
The move is the most aggressive action against Russia’s energy sector since the war began and aims to directly cut off the primary source of funding for the Kremlin’s military operations.
Headline Points
• US Imposes New Sanctions on Major Russian Oil Companies: Washington directly targeted Rosneft and Lukoil, which account for nearly half of Russia’s crude exports, by freezing US assets and prohibiting transactions with American entities.
• Putin Insists Russia Will Not Bow to US Pressure: The Russian President acknowledged the sanctions are “serious” and will have “certain consequences” but firmly stated that “no self-respecting country and no self-respecting people ever decides anything under pressure.”
• Global Oil Market Reacts: Oil prices surged following the announcement, reflecting market concern over potential supply disruptions, while reports emerged that major buyers like India and China were pausing new Russian oil imports for review.
Putin Dismisses Economic Impact
While admitting the measures were serious, President Putin worked to downplay the overall economic risk, stating, “They will not significantly impact our economic well-being.
” He dismissed the sanctions as an “attempt to put pressure on Russia,” adding a thinly veiled warning that attempts to disrupt Russian oil supply could cause global price spikes that would be “uncomfortable” for countries like the United States.
The defiance was echoed by former Russian President Dmitry Medvedev, who branded the sanctions as an “act of war” and accused Washington of abandoning diplomatic efforts.
The sanctions came shortly after US President Donald Trump canceled a planned summit with Putin, citing frustration over a lack of progress in peace negotiations.
Treasury Secretary Scott Bessent stated the measures were necessary due to “President Putin’s refusal to end this senseless war,” aiming to choke off the Kremlin’s war machine.
Global Market Uncertainty
The direct targeting of Rosneft and Lukoil—key pillars of Russia’s budget—marks a significant escalation of economic warfare. Analysts estimate the restrictions could lead to an immediate drop of between 500,000 and 1 million barrels per day in Russian exports if effectively enforced.
The move immediately sent global oil prices soaring. More critically, reports indicate that Russia’s two biggest energy customers, China and India, are now reviewing their purchasing contracts.
While Russian officials claim they will quickly adapt using new trading schemes and a “shadow fleet” of tankers, the looming threat of US secondary sanctions—which could cut off foreign banks from the US financial system—places unprecedented pressure on Moscow’s entire oil trading network.
US President Trump responded to Putin’s defiance by suggesting the long-term impact remains to be seen.
“I am glad he feels that way. I’ll let you know about it in six months from now,” Trump told reporters, underscoring Washington’s commitment to sustained economic pressure.
