New US sanctions against the Kremlin's oil giants: how it will affect the Russian economy

This is reported by the BBC. Edward Fishman, a former senior US State Department sanctions official, said the effectiveness of the new measures will depend on Washington's willingness to act decisively. "The question is whether the US will really threaten Chinese banks, traders from the UAE, and Indian refineries that work with Rosneft or Lukoil with secondary sanctions. In the short term, we can expect a reduction in the volume of deals with Russian oil," he said.

One of the consequences of the sanctions was the increase in world oil prices, which was observed after the official announcement of the restrictions. At the same time, experts believe that this effect may be temporary. Dr. Stuart Rollo, a researcher at the Center for International Security Studies at the University of Sydney, believes that prices will stabilize in the longer term.

"I do not expect a long-term increase in the price of oil, unless the United States ensures strict compliance with secondary sanctions related to shipping and financial operations of these companies," he said in an interview with the BBC. We will remind that the USA introduced new sanctions against the Kremlin on the evening of October 22. The two largest Russian oil companies — "Lukoil" and "Rosneft" — came under significant restrictions.

The press release of the US Treasury Department states that the decision was made due to Russia's "lack of serious commitment to the peace process to end the war in Ukraine. " US President Donald Trump announced on October 22 that he had canceled a meeting with Russian President Vladimir Putin that was scheduled to take place in Budapest.