Wall Street Warns: Trump’s Sanctions Could Deal a “Devastating” Blow to Russia’s Economy

Global financial markets are on edge. After U.S. President Donald Trump imposed new sanctions targeting Russia’s four largest oil producers — Rosneft, Lukoil, Surgutneftegaz, and Tatneft — analysts on Wall Street are warning of the most severe economic crisis in Russia since 1998.

Hitting the Heart of Russia’s Economy The latest sanctions strike directly at the core of the Russian economy — its energy exports, which account for nearly one-third of federal revenues.

The move came after the Kremlin rejected Washington’s call for a ceasefire and peace talks regarding the ongoing war in Ukraine. Markets reacted immediately.

The price of Brent crude surged 5%, while WTI climbed above $60 per barrel.

According to Helima Croft, head of global commodity strategy at RBC Capital Markets, the move represents “the most significant U.S. step to shut down Russia’s war cash flow.” “Refineries that want to maintain access to U.S. financial markets will have to abandon Russian barrels,” Croft said.

The U.S. and EU Move in Full Lockstep For the first time since the start of the war, the United States and European Union have fully synchronized their sanctions packages.

The new EU measures include:

🔹 A ban on Russian LNG imports worth over €7 billion ($8.1 billion)

🔹 Blacklisting 21 Chinese and other foreign companies accused of helping Moscow evade restrictions

🔹 Banning 117 additional “shadow ships” used to secretly transport Russian oil — bringing the total number of sanctioned vessels to 558

According to The Wall Street Journal, the coordinated sanctions could have a “multiplicative effect,” striking not only Russian producers but also the banks and shipping firms enabling oil exports. China, however, condemned the EU’s move as “illegal,” warning that “most nations will continue to trade with Moscow.”

Trump responded by urging Europe to focus on Beijing’s financial support for Russia, arguing that Chinese trade and credit flows are “fueling Moscow’s war economy.”

Russia’s Economy Under Pressure Despite the Kremlin’s defiant tone that Russia has built “immunity to Western sanctions,” the data tells another story: Inflation: 7.9%Central bank rate: 17%Expected GDP growth in 2025: just 0.6% (down from 4.3% last year) The International Monetary Fund (IMF) projects Russia’s economy will stall almost completely next year.

With falling oil prices and shrinking exports, the government is draining the National Wealth Fund, issuing more domestic bonds, and raising taxes to stay afloat. The Opora Association of Small Businesses called the new tax hikes “a shock to all small enterprises.”

Factories producing everything from tractors to furniture are cutting output, while export revenues from oil and gas are falling to pre-war levels.

Moscow’s “Shadow Fleet” and Sanctions Evasion In response, Russia has built a shadow fleet of tankers operating beyond Western oversight, exporting crude through intermediaries in Turkey, India, and China. According to Rachel Ziemba of the Center for a New American Security, this workaround may “cushion some effects” of the sanctions, “but not without long-term economic pain.”

Western Leaders: “Russia Still Shows No Will for Peace” Ukrainian President Volodymyr Zelensky praised the new transatlantic unity in Brussels, saying: “Russia is not showing any desire to stop this war. It keeps attacking us. Thank you for this unity — thank you for this support.” Wall Street strategists believe this latest coordinated campaign marks the most forceful economic pressure placed on Moscow since the start of the invasion — one that could reshape the global energy landscape.

#WallStreet , #russia , #putin , #TRUMP , #Geopolitics

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