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Trump Rules Out Easing Sanctions on Russian Oil Companies Amid Peace Plan Talks

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Trump Rules Out Easing Sanctions on Russian Oil Companies Amid Peace Plan Talks. Source: AP
Trump Rules Out Easing Sanctions on Russian Oil Companies Amid Peace Plan Talks. Source: AP

US President Donald Trump said that sanctions against Russian oil companies Lukoil and Rosneft will remain in place during discussions on the American “peace plan.”

The Gaze reports on it, referring to CNN, citing Fox News.

In a podcast hosted by Fox News' Brian Kilmeade, Trump stressed that sanctions are a powerful tool that significantly complicates the sale of Russian oil and affects the country's economy as it is heavily dependent on the energy sector. 

He added that he does not plan to take any action to lift them in the near future.

“I'm not doing anything having to do with taking back sanctions,” the President added.

Recent weeks have seen significant pressure on the Russian energy sector due to new sanctions and military strikes, which have seriously affected Russia's oil exports and revenues. 

The United States, the United Kingdom, and Australia have imposed restrictive measures against Russia's largest oil companies, Rosneft and Lukoil, due to the Kremlin's lack of real willingness to seek a peaceful settlement to the war in Ukraine. The sanctions include asset freezes, restrictions on company management, and a ban on interaction with foreign partners, complicating the companies' operations abroad.

In response, Lukoil announced a plan to sell its international assets to minimize the impact of the sanctions and ensure the gradual cessation of foreign operations under the US OFAC license. 

The company is reviewing offers from potential buyers for its assets in Europe, Central Asia, Africa, and Latin America, including large oil fields and refineries in Bulgaria, Romania, and Turkey.

In addition, Ukrainian strikes on strategic oil refineries and port infrastructure have caused Russian oil exports to fall to their lowest level since the start of the full-scale war. Total maritime exports in October fell to 1.89 million barrels per day, the lowest level since the beginning of 2022.

Ukrainian President Volodymyr Zelenskyy stated that Russian oil and gas revenues will decline by at least $37 billion this year. 

In addition, the total losses for the Russian energy sector, including oil companies, are estimated at tens of billions of dollars, which significantly limits the Kremlin's ability to finance military operations. According to Zelenskyy, Western sanctions and Ukrainian attacks on energy infrastructure are working effectively to limit the activities of the Russian energy machine.

As The Gaze reported ealier, India’s largest refiner, Reliance Industries, has completely stopped importing Russian crude to its vast Jamnagar refining hub, moving early to comply with sanctions targeting Moscow’s oil sector. The company had a long-term deal with Russia’s Rosneft to buy nearly 500,000 barrels of crude per day. 

Read more on The Gaze: Why Ukraine Should be Allowed to Attack Russian Oil Refineries – Benefits for the US and EU

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