EU targets Russian energy with new sanctions, welcomes Trump measures

The European Union on Thursday launched a new round of sanctions against Russia over its war in Ukraine, joining the United States in targeting Moscow’s energy infrastructure.

The package of measures approved by member states on Wednesday evening includes a ban on Russian liquefied natural gas (LNG) imports.

This comes shortly after US President Donald Trump. In a major policy changeannounced new sanctions against Rosneft and Lukoil, two of Russia’s largest oil companies.

Trump told reporters on Wednesday that he felt the time was right to impose the measures and expressed hope that the sanctions would not last long, describing them as “tremendous”.

Kaja Callas, the EU’s high representative for foreign affairs and security policy, welcomed the Trump administration’s sanctions on Russian oil companies, describing the policy as a “signal of strength”.

Speaking to CNBC “Europe Early Edition” On Thursday, Callas said: “This is really depriving Russia of funding this war and it is necessary to end this war.”

In a social media post, Callas added The European Union’s latest sanctions package will target Russian banks, crypto exchanges and entities in India and China.

European Commission President Ursula von der Leyen, meanwhile, said The bloc’s 19th package of sanctions, formally adopted on Thursday, will put “greater pressure on the aggressors” of the Russia-Ukraine war.

“For the first time we are hitting Russia’s gas sector – the heart of its war economy. We will not back down until the people of Ukraine have a just and lasting peace,” von der Leyen said on Thursday.

Danish Foreign Minister Lars Lokke Rasmussen said The EU’s latest sanctions were a “decisive step” towards cutting off Russia’s biggest source of oil and gas revenue, and the top US sanctions would have a “severe impact” on the Russian economy.

The European Union’s sanctions deal, which took weeks to finalize, comes hours before Ukrainian President Volodymyr Zelenskyy is due to join his European counterparts for a one-day summit in Brussels, Belgium.

International benchmarks Brent Crude futures for December expiration traded up 3.3% at $64.66 a barrel, while US West Texas Intermediate Futures for December expiration were at $60.46, also up about 3.3%.

PVM Oil Associates analyst Tamas Varga described Trump’s move to sanction Rosneft and Lukoil as “significant”, saying it was the first time Trump sanctioned the Russian oil industry.

“The market reaction was understandably upbeat. It should be noted that whenever Russian producers have been targeted by the EU or the G7 in the past, there have always been willing buyers of Russian oil,” Varga told CNBC via email.

“Sanctions on oil suppliers are most effective when there is pressure on consumers. For this reason, India’s decision to significantly reduce its purchases of Russian oil is as important as the measures imposed by the US on Russian oil companies,” he added.