Russian President Vladimir Putin has dismissed sweeping American sanctions targeting the country’s oil giants as an “unfriendly act” whilst insisting Moscow will not buckle under economic pressure, marking his first direct response to Washington’s toughest penalties yet.
The Kremlin leader struck a defiant tone following Wednesday’s announcement that the United States had blacklisted Rosneft and Lukoil, Russia’s two largest oil companies responsible for nearly half the nation’s crude exports. Speaking after a congress of the Russian Geographical Society, Putin acknowledged the measures but insisted they would not alter Moscow’s course.
The sanctions are an attempt to put pressure on Russia,” Putin said, according to Russian state media. “But no self-respecting country does anything under pressure.”
The Russian president characterised the restrictions as damaging to bilateral relations, stating they represented an “unfriendly act” that “does not strengthen Russian-American relations”. Despite the harsh rhetoric, Putin maintained that dialogue remained preferable to confrontation, adding: “Dialogue is always better than war.”
US Treasury Secretary Scott Bessent announced the sanctions in response to what Washington termed Putin’s “refusal to end this senseless war” in Ukraine. The measures came after a planned summit between Putin and President Donald Trump in Budapest collapsed, with Trump cancelling the meeting days earlier, citing concerns about a “wasted meeting.
The sanctions target Rosneft PJSC and Lukoil PJSC along with dozens of their subsidiaries, freezing their assets in America and prohibiting US entities from conducting business with them. Together, the firms account for approximately 3.1 million barrels per day of oil exports, representing a substantial portion of global supply.
Trump told reporters the penalties represented “tremendous sanctions” against “their two big oil companies”, explaining he had waited months before acting. “I felt it was time,” the American president said, though he expressed hope the restrictions “won’t be on for long” if the conflict ends.
Putin warned that replacing Russian oil on global markets would prove neither swift nor painless. “If the amount of Russian oil and petroleum products on the world market decreases sharply, prices will rise,” he stated, suggesting Western consumers would bear the brunt of any disruption.
Oil prices surged approximately 5% following the announcement, with West Texas Intermediate jumping above $61 per barrel in its largest single-day gain since June. American energy companies including ExxonMobil and ConocoPhillips saw share prices climb as markets factored in potential supply constraints.
The Russian leader pointedly reminded audiences that Trump had imposed more sanctions on Russia during his first presidential term than any predecessor. Putin also questioned the motives of advisers recommending the oil restrictions, suggesting Trump consider “who the people from the Trump administration are working for” when they propose limiting Russian energy.
Putin emphasised Russia’s significant contribution to global energy markets, noting that Russia and Saudi Arabia are major oil exporters whilst America remains a substantial consumer. He indicated previous discussions with Trump about how Russian oil supplies affect prices, including in American markets.
The Kremlin spokesperson Maria Zakharova insisted the measures “will not cause problems for Russia, which has developed a strong immunity to such restrictions”. However, she warned they send a “counterproductive signal” regarding potential Ukrainian peace negotiations.
Former Russian President Dmitry Medvedev adopted a more aggressive stance, describing the sanctions as tantamount to “an act of war against Russia” and accusing Trump of joining “crazy Europe” in targeting Moscow. “The United States is our adversary, and their talkative ‘peacemaker’ has now fully embarked on the warpath against Russia,” Medvedev wrote on social media.
The European Union synchronised its own 19th sanctions package against Russia on Wednesday, including a ban on Russian liquefied natural gas imports by 2027 and travel restrictions on Russian diplomats. Ukrainian President Volodymyr Zelenskyy welcomed the American action, calling it overdue after “numerous attempts to give Russia a chance to begin real negotiations”.
Professor Donnacha Ó Beacháin from Dublin City University told Euronews the sanctions would likely fail to bring Moscow to the negotiating table. “For Putin, any agreement will reflect the realities on the battlefield,” he said, noting Russia’s continued territorial gains despite immense casualties. “There is no evidence that this position has changed.”
Peter Zalmayev, director of the Eurasia Democracy Initiative, suggested Trump’s patience with Putin had worn thin as the Russian president began causing political damage domestically. “Donald Trump has had enough with Vladimir Putin,” Zalmayev told CNN, describing the sanctions as an attempt to pressure Moscow without further military escalation.
However, analysts questioned whether the measures would prove effective given Russia’s adaptation to previous penalties. China, India and other nations have substantially increased Russian oil purchases since the 2022 invasion, utilising a so-called “dark fleet” of tankers employing deceptive tactics to conceal cargo.
The sanctions followed a major Russian air assault on Ukraine on Wednesday that killed seven people, including strikes on Kyiv. The timing underscored frustrations in Washington over Moscow’s continued military aggression despite months of diplomatic overtures from Trump.
Trump separately announced he would deny Ukraine’s request for long-range Tomahawk cruise missiles, telling reporters: “The only way a Tomahawk is going to be shot is if we shoot it. And we are not going to do that.”
Putin suggested the planned Russian-American summit was merely postponed rather than cancelled permanently, though he offered no timeline for rescheduling. “The Budapest summit was proposed by the American side, but I said that such meetings should be well prepared,” he explained.
Russia’s Finance Ministry has projected a challenging economic outlook, with a 24% decline in oil and gas revenues expected this year compared to earlier estimates. The ministry lowered its oil price forecast from £51.20 ($69.70) to £41.14 ($56) per barrel whilst raising the 2025 budget deficit estimate significantly.
Economic pressures have mounted as Ukrainian long-range strikes targeted Russian refineries and fuel infrastructure, contributing to domestic fuel shortages. Russia’s Economic Development Ministry predicts growth will slow from 4.3% in 2024 to 2.5% this year.
Whether the combined pressure of Western sanctions and Ukrainian military action will force Putin towards serious negotiations remains uncertain. The Russian president has consistently demanded Ukraine accept territorial losses and abandon NATO aspirations, conditions Kyiv categorically rejects.
For now, Putin’s response suggests Moscow intends to weather the economic storm rather than compromise on its war aims, banking on global energy markets and Western resolve eventually favouring Russian interests.
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Image Credit:
Vladimir Putin — photo from the website of the President of the Russian Federation / ― Пресс-служба Президента РФ, licensed under CC BY 4.0. (commons.wikimedia.org)
