Brussels: The European Union heaped more economic sanctions on Russia, adding to US President Donald Trump’s new punitive measures the previous day against the Russian oil industry. Russian President Vladimir Putin called Washington’s move an “unfriendly act” that could backfire by spiking global oil prices.
The American and European sanctions are intended as part of a broadened effort to choke off the revenue and supplies that fuel Moscow’s invasion of Ukraine, compelling Putin to negotiate an end to the war.
Speaking to reporters in Moscow, Putin acknowledged that the “serious” U.S. sanctions will have “certain consequences” for Russia, but maintained that they will not significantly impact its economy.
Ukrainian President Volodymyr Zelenskyy, who has long campaigned for the international community to punish Russia more comprehensively for attacking his country, hailed the new restrictions.
“We waited for this. God bless, it will work. And this is very important,” Zelenskyy said in Brussels, where EU countries attending a summit announced the latest round of Russia sanctions.
Despite U.S.-led peace efforts in recent months, the war shows no sign of ending after nearly four years, and European leaders
are increasingly concerned about the threat from Russia.
Ukrainian forces have struggled to stem slow but steady advances by Russia’s bigger army along a roughly 1,000-kilometer (600-mile) front line that snakes along eastern and southern Ukraine.
Almost daily
Russian long-range strikes have taken aim at Ukraine’s power grid before the bitter winter, while Ukrainian forces have targeted Russian oil refineries and manufacturing plants.
Energy revenue is the linchpin of Russia’s economy, allowing Putin to
pour money into the armed forces without worsening inflation and avoiding a currency collapse.
International crude prices jumped more than USD 2 per barrel Thursday on news of the new U.S. sanctions against Russia’s oil giants Rosneft and Lukoil.
Putin said he warned Trump that an attempt to curb Russian oil exports will destabilize global oil markets and backfire against the United States. “A sharp reduction in the amounts of our oil and oil products sent to global markets will lead to price increases,” he said, adding that consumers at U.S. gas stations will feel the impact.
The sanctions don’t take effect for almost a month, until Nov. 21, potentially giving Putin a chance for a change of heart.
Chris Weafer, CEO of the Macro-Advisory Ltd. consultancy, said “that’s a window where they hope Russia will more seriously engage, and if it does, then those sanctions could be suspended.”
“You can be sure that every oil buyer in Asia today is trying to find anything that floats that they can buy Russian oil before that sanction kicks in,” Weafer told The Associated Press from London.