Last straw: everyone strikes the Russian economy to force it to end the war now - RFU News

[TexasTowelie]

Today, there are interesting updates from the Russian Federation.

Here, а long-anticipated triple strike against Russia has finally landed, with the EU, the UK, and the United States having had enough of the Russian stalling tactics. This marks the most unified Western action since the start of the full-scale war and the last straw for eastern allies who are now cutting ties with Russia one by one.

The turning point came when the United States abruptly canceled the planned high-level summit in Hungary between Presidents Trump and Putin, discussed in a phone call between the two leaders earlier. After Russia maintained its position of no ceasefire, that Ukraine should give up all claimed lands, should receive no security guarantees, while stating it would take some time to organize a delegation, the American side called the talks fruitless given Russia’s behavior before they even started.

The consequences came swiftly, as the United States finally lifted the restriction on Western-supplied missiles for deeper attacks, paving the way for the devastating Storm Shadow strike on the Bryansk Chemical Plant, carried out with American intelligence coordination. Then, within 48 hours, the United States, the UK, and the EU unveiled synchronized sanctions, the largest package since 2022, targeting Russia’s energy and financial arteries.

The United States blacklisted Rosneft and Lukoil alongside 34 subsidiaries and logistics firms, responsible for over half of Russia’s total oil production. The European Union’s 19th sanctions package banned Russian liquified natural gas imports by 2027, sanctioning Rosneft and Gazprom Neft, freezing 117 more shadow fleet tankers, and hitting Chinese banks and refineries that enabled Russia’s sanctions evasion. The United Kingdom aligned fully, sanctioning Rosneft, Lukoil, along with four Chinese oil terminals, 44 shadow fleet tankers, and major insurers and financial intermediaries. Together, these steps cut deeply into Russia’s export system, the backbone of its war economy, at a moment when it can least afford it.

Russia's energy sector, already battered by Ukrainian drone and missile strikes, has been reduced from a global exporter to a struggling importer. The new sanctions deliver the final blow, as India announced a complete suspension of state-imports to comply with U.S. measures, while private refiners did the same, as the country negotiates a trade deal with the United States that would lower tariffs on Indian exports in exchange for cutting Russian oil. Meanwhile, China’s state energy giants halted new seaborne Russian crude purchases within hours of the sanctions announcement, fearing secondary penalties for them as well. This effectively isolates Russia from its two biggest buyers and economic lifelines, which combined hold an over 85% share of Russian crude exports.

In 2022, oil and gas brought 130 billion US dollars into the Russian federal budget. By 2023, that number had collapsed by nearly 20% to around 109 billion US dollars. Even with temporary stabilization in 2024, cumulative losses exceeded 100 billion US dollars due to price discounts for India and China, who took advantage of Russia’s weakened market position. As of mid-2025, monthly oil tax receipts were down another 28% year-on-year. Now, sanctioned Rosneft and Lukoil accounted for half of Russia’s 10.6 million barrels per day output and nearly a third of all federal tax revenue. Analysts estimate that with the new sanctions and the withdrawal of India and China, Russia could lose an additional 70 to 120 billion US dollars annually, equal to almost 6% of its gross domestic product.

The deeper problem is that Rosneft and Lukoil subsidiaries are embedded across rail, port, logistics, and petrochemical industries, employing millions and underpinning regional economies across Russia. Sanctions on these parent firms endanger almost every aspect of the Russian economy, and as a result, its exports. Meaning, the sanctions on only two of Russia’s main oil companies threatens the entire transport, manufacturing, and stability of local and international Russian trade. Economists warn of a potential additional 5 to 10% GDP contraction of around 200 billion US dollars if these disruptions persist in the coming winter.

Overall, what began as a diplomatic setback has turned into a coordinated Western offensive from all sides. Negotiations were canceled, trade routes shut off, and Russia’s global oil network was targeted. Ukrainian President Volodymyr Zelensky praised the move, calling it exactly what Ukraine has been waiting for after Russia’s continued targeting of civilians, most strikingly a recent strike on an in-session kindergarten. For Russia, time is running out, and Putin may insist he will not act under pressure, but with energy...