Vladimir Putin has said Russia will never bow to US pressure but conceded new sanctions could cause some economic pain, as China and India were reported to be scaling back Russian oil imports after Washington targeted Moscow’s two largest producers.
The US on Wednesday imposed sanctions on Rosneft and Lukoil, as well as nearly three dozen of their subsidiaries, as the Trump administration increased pressure on the Kremlin to negotiate an end to its war against Ukraine. The EU separately agreed to a phased ban on the import of Russian liquefied natural gas, and added two Chinese oil refiners to its Russian sanctions list.
The Russian leader on Thursday described the US sanctions as an “unfriendly act that does nothing to strengthen Russian-American relations” and “an attempt to put pressure on Russia”, which he said was futile. While he said the new sanctions would not have a significant impact on Russia, he acknowledged that “some losses are expected”.
There were early signs on Thursday that Russia’s two biggest energy customers were suspending their energy imports in response to the new US sanctions. India’s largest buyer of Russian oil, Reliance Industries, hinted that it was preparing to scale back or even temporarily halt purchases. Several sources also told Reuters that China’s state-owned oil companies have suspended purchases of seaborne Russian crude, at least in the short-term.
On Thursday the EU added two Chinese refineries – Liaoyang Petrochemical and Shandong Yulong Petrochemical – to its Russian sanctions list. The Chinese foreign ministry said China had lodged protests with the EU, stating that “China strongly deplores and firmly rejects the EU’s repeated illicit unilateral sanctions against Chinese companies over Russia-related issues”.
