- October 23, 2025
- 12:17 pm
- Middle East
Trump imposed sanctions against Russian oil companies “Rosneft” and “Lukoil” on the night of October 22-23, 2025, amid the escalation of the conflict in Ukraine. This move was a response to Putin’s refusal to cease military actions and underscored the firmness of the American stance towards Moscow.
Situation in Budapest
The cancellation of the meeting between Trump and Putin, planned in Budapest, became a catalyst for new sanctions. The summit was expected to be significant in the sphere of US-Russian relations, but preparations for the event were overshadowed by a cold reception from the Kremlin. American envoy Vitkoff reported that Russia was not ready to discuss a possible peace and demanded recognition of its control over Donetsk and Luhansk.
A few hours later, the meeting was postponed, and Moscow’s response looked like a challenge: “The war will continue on our terms.” Left without diplomatic success, Trump gathered cabinet members for an emergency meeting at the White House, after which new measures were announced.
Trump and his approach to economic sanctions
Experts note that Trump uses economic tools as a way to avoid the use of military force. He made it clear that he has other options if Russia continues its actions, hinting at the use of Tomahawk missiles as a means of targeted strike.
The reference to the possibility of military intervention, even if only hints, was perceived by Moscow as a serious threat. Against the backdrop of Trump’s words about the application of additional measures, Russia recorded the movement of forces and increased the combat readiness of its troops.
Preparing for a meeting, but for new conflicts
A few hours before the cancellation of the meeting in Budapest, everything was ready for a photo of world leaders. Hungarian Orban was counting on a successful summit that could establish Budapest as a “center of dialogue between East and West.” However, the event was negatively affected by unexpected disagreements, causing a sharp turn of events.
New realities in the world
Trump demonstrates a new approach, combining economic, military, and political aspects. In light of Putin’s refusal to cooperate, Washington is betting on direct sanctions, which primarily hit the Russian oil industry. As a result, the new measures led to a rise in oil prices, causing concerns about a potential supply shortage.
The sanctions target not only “Rosneft” and “Lukoil” but also affect many subsidiaries, including those subject to the 50% ownership rule. The restrictions aim to reduce Kremlin revenues and increase pressure on Moscow for an unconditional ceasefire.
Economic consequences in Europe
In Brussels, a sanctions package is being discussed, becoming one of the most significant, reaching the level of a ban on the import of liquefied natural gas from Russia. This decision signifies steps to prevent sanctions circumvention through the activities of old tankers, which, according to experts, forms a more serious Western coalition against Russian actions.
Russia’s reaction and Ukraine’s countermeasure
While Russia conducts offensive operations using missiles and drones based on reports from Kyiv, there are mass casualties and destruction of critical infrastructure. Ukraine, in response, has increased its strike campaigns against Russian targets, viewing them as long-term pressure strategies on the adversary.
How sanctions affect the market
According to the published data on sanctions, “Rosneft” and “Lukoil” are included in the blacklist, creating additional barriers for working with these companies. Long-term contracts will be reviewed, and they have a limited time to adjust deals made before the announcement.
Tension in global politics and in Israel
The decisions made by Washington put Israel in a position to adapt to new realities in the world. Given the limited impact of oil supplies from Russia, the focus on global prices becomes primary. There is an increase in dependence on imports and stability in energy markets.
The uncertainty about how long the effect of the new sanctions will last and what the long-term consequences for Israel’s foreign policy will be remain active factors to watch in the coming months.
A brief outlook requires attention to several key issues: how the sanctions will be enforced, what reaction can be expected from the Kremlin to the new pressure, how the results of economic policy in Europe will be shown, and how this will affect oil prices and genocide in the region.
