U.S. President Donald Trump hit Russia's two biggest oil companies with sanctions in a sharp policy shift on Moscow's war in Ukraine, prompting global oil prices to rise by 5% and India to consider cutting Russian imports.
The sanctions target oil giants Rosneft and Lukoil, which between them account for more than 5% of global oil output, and mark a dramatic U-turn by Trump, who said only last week that he and Russian President Vladimir Putin would soon hold a summit in Budapest to try to end the war in Ukraine.
While the extent of the financial hit on Russia may be limited in the short term, the move is a powerful signal of Trump's intent to squeeze Russia's finances and try to force the Kremlin towards a peace deal.
Putin derided the sanctions as an unfriendly act, saying they would not significantly affect the Russian economy and talked up his country's importance to the global market. He warned a sharp supply drop would push up prices and be uncomfortable for countries like the United States.
"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."
With Ukraine asking U.S. and European allies for long-range missiles to help turn the tide in the war, Putin also warned that Moscow's response to strikes deep into Russia would be "very serious, if not overwhelming".
