Select Language:
Here is the rewritten, human-like, unique, and plagiarism-free version of the content in American English:
A display shows a signboard with the logo of Russia’s major oil company, Rosneft, at the St. Petersburg International Economic Forum (SPIEF) in Saint Petersburg, Russia, on June 5, 2024. — Reuters
- The first sanctions related to Ukraine targeting Russia during Trump’s second term.
- Bessent urges allies to join the U.S. in imposing sanctions on Russia.
- Trump expresses hope that these sanctions won’t be necessary for a long period.
WASHINGTON/BRUSSELS: On Wednesday, U.S. President Donald Trump announced sanctions against Russia connected to Ukraine for the first time in his second term, specifically targeting oil giants Lukoil and Rosneft amid increasing frustration with Russian President Vladimir Putin over the ongoing conflict.
This decision followed the European Union’s approval of its 19th set of sanctions against Moscow, which includes a ban on Russian liquefied natural gas imports. It also comes after Britain sanctioned Rosneft and Lukoil last week.
The U.S. Treasury Department indicated readiness to take additional measures and called on Moscow to agree immediately to a ceasefire in Ukraine, which has been ongoing since February 2022.
“Due to President Putin’s refusal to end this pointless war, the Treasury Department is sanctioning Russia’s two largest oil companies that fund the Kremlin’s military efforts,” Treasury Secretary Scott Bessent stated. “We encourage our allies to join us and enforce these sanctions.”
Following these measures, oil prices surged over $2 per barrel, with Brent crude futures rising after settlement to approximately $64.
These sanctions mark a significant shift in U.S. policy, as President Trump had previously avoided sanctioning Russia over its war, relying instead on trade measures. Earlier this year, Trump imposed a 25% tariff on Indian goods in response to their purchase of discounted Russian oil.
The U.S. has not placed tariffs on China, another key importer of Russian oil. A price cap of $60 on Russian oil, introduced by Western countries after Russia’s invasion, has shifted Russia’s primary markets from Europe to Asia.
In a brief statement from the Oval Office, Trump said he canceled a planned summit with Putin in Hungary because it didn’t seem like the right moment.
He also mentioned hope that the sanctions on Russian oil companies won’t need to stay in place for an extended period. Last year, Trump expressed a preference for swiftly removing sanctions to prevent risks to the dollar’s dominance in global trade. Russia has often requested to be paid for oil in other currencies.
“It Can’t Be a One-Time Deal”
Experts view these actions as a crucial and long-overdue step.
“This cannot be just a one-and-done,” stated Edward Fishman, a former U.S. official now serving as a senior research scholar at Columbia University. He emphasized the importance of whether the U.S. will now threaten sanctions against anyone doing business with Rosneft and Lukoil.
Jeremy Paner, a former sanctions investigator at the Treasury Department and currently a partner at Hughes Hubbard & Reed law firm, pointed out that the lack of involvement from banks or Indian and Chinese oil buyers in Wednesday’s sanctions means they might not significantly impact Putin.
However, a senior Ukrainian official welcomed the move, calling it “excellent news,” and noted that Kyiv had previously proposed targeting these two Russian energy firms with sanctions.
The Treasury also targeted several subsidiaries of Rosneft and Lukoil. These measures block U.S. assets owned by those companies and prevent Americans from engaging in business with them.
The Russian embassy in Washington and Russia’s mission at the United Nations in New York have yet to comment on these sanctions.
EU’s New Measures Target Russia’s Shadow Fleet
The European Union’s ban on Russian LNG will be implemented in two phases: short-term contracts will be phased out after six months, and long-term contracts will end by January 1, 2027. This timeline arrives a year earlier than the EU’s original plan to reduce dependence on Russian fossil fuels.
The latest EU package also introduces new travel restrictions on Russian diplomats and adds 117 vessels, mostly tankers, to its list of Moscow’s shadow fleet, bringing the total to 558. It also includes banks from Kazakhstan and Belarus.
Sources from the EU have indicated that four entities connected to China’s oil industry will be included in the sanctions list, though official names won’t be revealed until the formal approval process on Thursday. These include two refineries, a trading firm, and an organization involved in circumventing sanctions.
This version maintains the core facts and details while offering a more natural, engaging tone, tailored for an American English-speaking audience.
ChatGPT
Perplexity
Gemini AI
Grok AI
