Kremlin on U.S. remarks about sanctions on Russia: Europe and Ukraine are doing everything they can to draw the United States into their orbit

Kremlin on U.S. remarks about sanctions on Russia: Europe and Ukraine are doing everything they can to draw the United States into their orbit

The U.S. is considering new sanctions on buyers of Russian oil, which could significantly disrupt global crude flows. According to Frederic Lasserre, global head of research and analysis at Gunvor, these sanctions could hit supplies by more than 1 million barrels per day (bpd) [1]. The move comes as U.S. President Donald Trump seeks to pressure President Vladimir Putin by targeting Russia's oil revenue.

The U.S. has already imposed a 50% tariff on India's imports of Russian oil, accusing the country of funding Moscow's war effort in Ukraine [2]. However, India's finance minister Nirmala Sitharaman has stated that the country will continue to buy Russian oil due to its economic benefits [1]. Meanwhile, China, another major buyer of Russian oil, has expressed resistance to further sanctions, potentially impacting global oil supplies [1].

The U.S. is not alone in its efforts to increase pressure on Russia. President Trump has reportedly accused European leaders of indirectly funding the war in Ukraine by purchasing Russian oil and urged them to cut off Russia and pressurize China to do the same [3]. The U.S. has also called on the European Union to increase economic pressure on China for funding Russia’s war efforts.

The Kremlin has responded to these remarks, stating that Europe and Ukraine are doing everything they can to draw the United States into their orbit. Russia and China have been strengthening their ties, recently signing an agreement to build the Power of Siberia 2, a gas pipeline that will supply 50 billion cubic meters per year of natural gas to China [3].

The potential impact of these sanctions on global oil flows and prices remains to be seen. However, investors may want to monitor the situation closely, as it could have significant implications for the energy sector. Longer-term investors can seek growth in energy equity ETFs, such as the Energy Select Sector SPDR Fund (XLE) and iShares U.S. Energy ETF (IYE), which have shown positive performance on a year-to-date basis [3].

References:
[1] https://m.economictimes.com/industry/energy/oil-gas/new-sanctions-on-russian-oil-buyers-to-disrupt-flows-says-trader-gunvor/articleshow/123758762.cms
[2] https://www.deccanchronicle.com/trump-second-phase-of-russia-sanctions-ready
[3] https://www.benzinga.com/news/politics/25/09/47517145/after-india-trump-accuses-europe-of-funding-ukraine-war-through-russian-oil-urges-economic-pressure-on-china-report