TL;DR: President Vladimir Putin said new U.S. sanctions on Russia’s top oil firms would not harm the country’s economy, calling them an “unfriendly act” but insignificant. The sanctions, announced by President Donald Trump’s administration, target Rosneft and Lukoil to pressure Moscow over Ukraine.
What Happened
- On October 23-24, 2025, President Vladimir Putin said new U.S. sanctions would not “significantly impact” Russia’s economy, describing them as “serious” but “manageable.”
- The sanctions, announced by the U.S. Treasury on October 22-23, target Rosneft and Lukoil, Russia’s two largest oil producers and 34 subsidiaries.
- The measures block U.S.-based assets and ban American entities from doing business with these companies, aiming to restrict revenue funding Russia’s war in Ukraine.
U.S. and EU Measures
- President Donald Trump called the sanctions “tremendous,” saying they reflect frustration with Moscow’s refusal to agree to a ceasefire.
- The EU simultaneously approved its 19th sanctions package, expanding restrictions on Russian banks and energy revenues.
- A planned U.S.-Russia summit was postponed after limited diplomatic progress.
Russia’s Response
- Putin said Russia “will not cave in under pressure,” asserting that “no self-respecting country does anything under pressure.”
- He warned that if Washington supplies Tomahawk missiles to Ukraine, it would trigger a “devastating” response and further escalation.
- Foreign Ministry spokesperson Maria Zakharova said Russia has “strong immunity” to Western sanctions built over years of adaptation.
Economic and Market Reaction
- Brent crude prices rose 5.7% to $66.13 per barrel after the announcement amid global supply fears.
- Rosneft and Lukoil shares plunged on the Moscow Exchange, losing about $5.2 billion in combined market value.
- Analysts said Russia might face higher costs due to reliance on intermediaries and “shadow fleets” for oil exports, though rising prices could offset losses.
Global Reactions
- Ukraine’s President Zelenskyy urged expanding sanctions to all Russian oil companies.
- India and China began reassessing their purchases of Russian crude to avoid secondary sanctions.
- European leaders debated exemptions to protect local supply chains, with Germany and Hungary seeking leniency.
Outlook
- Russia claims long-term resilience through trade with China, India, and Turkey and increased reserves in yuan and rupees.
- Analysts warn the sanctions directly target Russia’s core revenue sectors; energy, finance, and shipping and their true effect will depend on enforcement and Asian market behavior in the coming months.