Russian invasion Sanctions

Putin on sanctions: “An unfriendly act”

Russian President Vladimir Putin denounces the US sanctions against Russian oil giants Rosneft and Lukoil as “unfriendly”. At the same time, he dismisses them as ineffective, writes Reuters.

“They will not significantly affect our prosperity,” he says, adding that the measures could lead to price increases that he believes could be inconvenient for countries like the US.

Putin describes the sanctions as an attempt to pressure Russia. But “no self-respecting country decides anything under pressure”, says the Russian president.

Oil exports are an important part of the Russian economy and thus the country’s war chest.

Around 6:30 p.m., the spot price of Texas oil WTI has risen more than 4 percent for the day and is trading for close to $62 a barrel.

Sources: China pauses oil purchases from Russia

Chinese state-owned oil companies are pausing purchases of Russian oil delivered by sea after US sanctions on Russian oil giants Rosneft and Lukoil, sources told Reuters.

The data follows Indian refiners, the largest buyers of Russian oil shipped by sea, promising a sharp reduction in their purchases and a total phase-out in the longer term, according to Financial Times sources.

A reduced demand for Russian oil risks being a very hard blow to Russia and President Vladimir Putin's war chest. The US aim of the sanctions is to force Russia to a ceasefire in the war in Ukraine.

Both yesterday and today, oil prices have risen significantly. At around 4:30 p.m., the spot price of Texas oil WTI is up 3.5 percent and is trading above $61 per barrel.

EU source: Tougher sanctions against Lukoil

The US's new sanctions against Russia's two largest oil giants, state-owned Rosneft and privately owned Lukoil, are being praised by European countries that have long wanted to see Trump take a tough stance against Russia.

The EU has sanctions in place against Rosneft - but after 19 sanctions packages, no sanctions have been imposed on Lukoil, reports Euronews.

- Lukoil is more complicated. For historical reasons, we have a connection to Lukoil, with refineries in Bulgaria and Romania still owned by them, says a senior EU source.

New sanctions - that's the sanktione point

• The US imposed new sanctions against Russian oil giants Rosneft and Lukoil on Wednesday.
• The EU's 19th sanctions package against Russia was approved the next day by all member states and includes, among other things, an accelerated phasing out of Russian gas and restrictions on Russian diplomats.
• The Russian government and President Vladimir Putin condemn the US sanctions, describing them as unfriendly and ineffective, while former President Dmitry Medvedev calls them an act of war.
• State-owned Chinese oil companies paused purchases of Russian oil as a result of the new sanctions, according to Reuters sources, while Indian refiners announced reduced purchases.
• The price of Texas oil WTI rose by more than 4 percent to nearly $62 per barrel on Thursday after the announcement of the sanctions and reduced demand for Russian oil.