‘We’ll see in six months,’ says Trump as Putin remains defiant amid sanctions on Russian oil companies

On the face of US sanctions on two of Russia’s oil giants Rosneft and Lukoil, Vladimir Putin appeared defiant. The move was aimed to harm the Russian economy, which would, in turn, lead to the end of the Ukraine war. However Putin believes that the impact would not be as widespread as Trump originally assumed. Trump, on the other hand, has also taken it as a challenge and given it six months. 

"This is, of course, an attempt to put pressure on Russia," Putin said. "But no self-respecting country and no self-respecting people ever decides anything under pressure."

Putin derided the sanctions as an unfriendly act, and said they would not significantly affect the Russian economy. He also talked up Russia's importance to the global market, and warned that a sharp supply drop would push up prices and be uncomfortable for countries like the United States.

When Trump was asked about Putin’s response, he said, "I am glad he feels that way. I'll let you know about it in six months from now. Let's see how it all works out..."

US vs RUSSIA

The United States imposed new sanctions on Russia's leading oil companies, Rosneft and Lukoil, which together account for more than 5 per cent of global oil output. This marks a significant shift in US policy, coming shortly after suggestions of a diplomatic summit with Putin. 

The sanctions are intended to limit Russian financial gains from energy exports as the Ukraine conflict persists. The measures had an immediate impact on the global oil market, prompting reactions from major buyers and signalling increased economic pressure on Moscow.

Trade sources report that the US sanctions have led Chinese state oil majors to suspend Russian oil purchases in the short term. Indian refiners, the largest buyers of seaborne Russian crude, are reportedly set to sharply cut their imports. These responses from key Asian consumers highlight the disruption in Russia's energy export market. While the immediate financial impact may be limited, the sanctions aim to squeeze the Kremlin's revenue streams.

The US action also represents a reversal from President Trump's earlier statements suggesting a summit with President Putin in Budapest to negotiate an end to the war in Ukraine. Trump announced the cancellation of the meeting, stating, "We cancelled the meeting with President Putin - it just didn't feel right to me." He added, "It didn't feel like we were going to get to the place we have to get. So I cancelled it, but we'll do it in the future."

Trump reflected that his "good conversations" with President Putin did not "go anywhere." Putin responded by suggesting the summit was likely postponed. The two leaders previously met in Alaska in August, but no substantial progress was reported.

Russia has reiterated its conditions for ending the war in Ukraine, which Kyiv and European countries consider tantamount to surrender. Meanwhile, European Union leaders, meeting with Ukrainian President Volodymyr Zelenskyy in Brussels, agreed to meet Ukraine's financial needs for the next two years. However, they stopped short of endorsing the use of Russian frozen assets to provide a large loan to Kyiv, after concerns from Belgium. Moscow warned it would deliver a "painful response" if the assets were seized.