In a recent India.com analysis titled “US Oil War: How Washington’s Bid to Stop Putin Is Forcing India and China to Ditch the Dollar,” experts revealed how Russia’s budget strain is deepening under U.S. financial sanctions that are reshaping global oil markets. The report highlights Washington’s aggressive use of secondary sanctions on Russian energy giants Rosneft and Lukoil, pressuring countries like India and China to balance economic opportunity with Western compliance and driving major shifts across Asia’s energy landscape.
“Russia’s budget is under strain, Putin has consistently demonstrated his willingness to accept economic pain rather than appear defeated,” said Benjamin Hilgenstock from the Kyiv School of Economics.
His assessment underscores how Russia continues to absorb financial pressure in pursuit of political goals despite a 20% drop in energy revenues this year.
The article situates Hilgenstock’s analysis within a broader discussion of sanctions-driven shifts in global finance. From rupee-ruble and yuan-based transactions to expanding efforts by India and China to bypass the dollar. These developments, India.com reports, could accelerate long-term “de-dollarization,” challenging the dominance of the U.S. financial system while complicating Western efforts to isolate Russia.
To read the full article and Benjamin Hilgenstock’s commentary, visit India.com.
Further Reading
Reducing Russian income requires a comprehensive approach centered on four key areas.
- The foremost priority is limiting energy exports, as these generate major revenues and sustain Russia’s fiscal stability through their deep economic influence.
- The next step is restricting access to critical materials, components, and technologies vital for weapons production, thereby constraining Russia’s military capacity.
- A third layer focuses on broader trade and financial restrictions, designed to reduce efficiency and market access across the economy.
- Finally, sanctions such as individual travel bans and airspace restrictions serve primarily symbolic and normative purposes but also exert meaningful indirect effects by influencing public perception, political behavior, and international reputation.
Explore the latest research on sanctions against Russia in the Sanctions Portal Evidence Base section. Learn about the main sanction packages imposed by Western allies following Russia’s full-scale invasion of Ukraine, as well as Russian countermeasures, by visiting the Timeline of Western Sanctions and Russian Countermeasures.
