Oil prices rose 5.4% in a day amid the imposition of sanctions against Russia by the US and EU

Yesterday, the United States imposed the first real sanctions against Russia during Trump's presidency, which led to a sharp increase in oil prices in anticipation of increased demand.

December Brent crude futures rose 5.4% yesterday to $64.7/barrel (-7.5% for the month), almost offsetting a two-week fall to a 5.5-month low.

According to the Ministry of Finance, the United States is introducing new sanctions against the Russian Federation due to the lack of serious commitment by Russia to the peace process to end the war in Ukraine. They will affect the Russian companies Rosneft and Lukoil, as well as companies that are directly or indirectly (50% or more) owned by these giants, even if they are not directly included in the sanctions list. These are 28 subsidiaries of Rosneft and 6 of Lukoil.

US Treasury Secretary Scott Bessant said, "Now is the time to stop the killing and declare an immediate ceasefire. In light of President Putin's refusal to end this senseless war, the Treasury Department is imposing sanctions on two of Russia's largest oil companies that fund the Kremlin's war machine. The Treasury Department stands ready to take additional measures if necessary to support President Trump's efforts to end another war. We call on our allies to join us in upholding these sanctions."

In addition, on September 23, the European Commission adopted the 19th package of EU sanctions against the Russian Federation, which introduces sanctions in the fields of energy, finance and military technologies.

Energy:

• a ban on the import of Russian LNG (liquefied natural gas) into EU markets, which should come into effect from January 2027 (a year earlier than in the REPowerEU plan);
• a complete ban on transactions for Rosneft and Gazpromneft;
• sanctions against 118 "shadow fleet" vessels that help circumvent oil restrictions;
• additional control over traders (especially in China).

Finance and cryptocurrencies:

• for the first time – sanctions against crypto platforms and cryptocurrency transactions that the Russian Federation uses to circumvent restrictions;
• ban on the Mir payment system (for foreign banks cooperating with it);
• Sanctions against banks in the Russian Federation and third countries that help circumvent sanctions.

Military technology and exports:

• adding to the "blacklists" 45 companies (in the Russian Federation and third countries) that support the Russian military-industrial complex;
• special emphasis on banning the export of technology for the production of drones.

Indian newspaper Mint also reported that the US and India are nearing a trade deal that could lead to a gradual reduction in India's imports of Russian crude oil, potentially increasing demand for oil from other suppliers and boosting demand for crude.