Sen. Markwayne Mullin, R-Okla., joins Varney & Co. to discuss alternatives to sending Tomahawk missiles to Ukraine, sanctions on Russian oil and President Donald Trump’s attacks on Venezuelan boats.
Oil prices rose on Thursday after the US imposed sanctions on major Russian oil companies over Russia’s war in Ukraine.
Brent crude futures rose 5%, while West Texas Intermediate crude futures rose more than 5.2% Thursday morning.
The Trump administration moved on Wednesday sanctions against Russia’s largest oil producersRosneft and Lukoil, about their role in financing Russia’s war in Ukraine, which has become Europe’s largest land war since World War II.
“Given President Putin’s refusal to end this senseless war, the Treasury Department is sanctioning Russia’s two largest oil companies that finance the Kremlin’s war machine,” Treasury Secretary Scott Bessent said in a statement. “We encourage our allies to join us in adhering to these sanctions.”
Trump administration hits Russia’s top oil companies with sanctions to hamper war financing, pushes for ceasefire
The US has imposed sanctions on major Russian oil companies that helped finance Russian President Vladimir Putin’s war in Ukraine. (Mikhail Metzel/Pool/AFP/Getty Images)
Russia’s oil and gas revenues, which have fallen 21% year-on-year, represent about a quarter of Russia’s budget and are the government’s main source of income. war in Ukraine.
However, Russia’s revenues come mainly from taxing production, rather than exports, which could reduce the immediate impact of the sanctions.
Ukrainian president Volodymyr Zelenesky thanked the US for the new sanctions, saying they were “very important” – although he noted that more pressure will be needed to convince Russia to agree to a ceasefire.
BESSENT WARNS ‘ALL OPTIONS ARE ON THE TABLE’ FOR RUSSIA SANCTIONS
Indian and Chinese oil companies and refineries may be forced to find alternative oil sources due to sanctions on Russia. (Hussein Faleh/AFP via Getty Images/Getty Images)
A Russian Foreign Ministry spokeswoman dismissed the impact of the oil sanctions, saying Russia has developed “strong immunity” against sanctions.
Lukoil canceled and canceled a planned board meeting regarding dividends in response to ‘the new circumstances’.
GAS PRICES ALMOST $3 FOR THE FIRST TIME IN YEARS
China and India are Russia’s biggest oil customers. (Maxim Shipenkov/POOL/AFP via Getty Images/Getty Images)
The US sanctions mean that refineries in China and IndiaCountries that are major buyers of Russian oil will have to find alternative suppliers to avoid being excluded from the Western banking system, according to Saxo Bank analyst Ole Hansen.
The The Trump administration Sanctions give companies until November 21 to halt their transactions with Russian oil producers.
Indian oil industry sources told Reuters that Indian refiners were about to sharply restrict imports of Russian oil to comply with US sanctions.
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Important Chinese state oil companiesincluding PetroChina, Sinopec, CNOOC and Zhenhua Oil, will refrain from buying Russian offshore oil at least in the short term because of the sanctions, Reuters reported, citing multiple industry sources.
Reuters contributed to this report.
