In a new article from the Associated Press (AP), the U.S. and European Union have announced fresh sanctions targeting Russia’s leading oil producers, Rosneft and Lukoil, aiming to curb revenues funding Moscow’s war in Ukraine. The move marks the Trump administration’s first major sanctions package targeting Russia’s oil, since returning to office, signaling a tougher stance toward the Kremlin’s war economy and its global oil trade.
“The sanctions are large and powerful, but they have always come a little too late,” said Maria Perrotta Berlin, Assistant Professor at the Stockholm Institute of Transition Economics (SITE).
She explained that Russia’s extensive network of traders and its “shadow fleet” have enabled it to adjust to previous rounds of restrictions. However, Maria Perrotta Berlin noted that the latest measures, which threaten secondary sanctions on Indian and Chinese refiners, could have a more immediate chilling effect on Russian oil exports.
The AP article also highlights how these sanctions aim to pressure President Vladimir Putin into accepting President Donald Trump’s proposal for an “immediate ceasefire.” Analysts caution that while the sanctions may not cripple Russia’s economy overnight, they could increase long-term costs, reduce oil revenue, and expose vulnerabilities in Moscow’s energy strategy. The EU’s parallel move to ban Russian LNG imports and sanction 117 additional tankers adds to the growing pressure on Russia’s fossil fuel sector.
To read Maria Perrotta Berlin’s full commentary and detailed analysis on how Trump’s sanctions shifted Russia’s oil policy, see the full AP article in the Associated Press here.
Further Reading
Energy exports play a crucial role in Russia’s economy and have long served as a source of geopolitical leverage over dependent countries. Sanctions targeting the energy sector aim to reduce state revenues and diminish Russia’s geopolitical influence. Explore the latest research on sanctions against Russia and its energy industry in the Sanctions Portal Evidence Base section.
Explore the main sanction packages imposed by Western allies after Russia’s full-scale invasion of Ukraine. Review Russian countermeasures, including retaliatory actions and domestic policies to reduce the sanctions’ impact. Visit the Timeline of Western Sanctions and Russian Countermeasures to learn more.
For more expert analysis from SITE, visit SITE’s website.
