Ukraine calls for increased pressure on Russian oil

Volodymyr Zelenskyy, the president of Ukraine, has urged US President Donald Trump to pressure China into reducing its support for Russia because of Moscow’s dependence on oil revenues to finance its war.

Trump is getting ready to meet Chinese President Xi Jinping later this week with Zelenskyy’s call on Tuesday. Russia’s two largest oil companies are currently facing sanctions from the US, while Ukraine’s military has been focusing on the infrastructure of the country’s oil industry.

Zelenskyy is eager to take advantage of Trump’s plan to buy US energy from Russia all over the world. The US president recently requested that all Russian energy purchases be stopped, and he is attempting to do so through tariffs.

According to the text of a briefing to journalists, Zelenskyy said, “I think this may be one of]Trump’s] strong moves, especially if, following [his] decisive sanctions step, China is ready to reduce imports.”

Trump and Xi will meet on Thursday on the sidelines of the APEC summit in Gyeongju, South Korea. This is their first direct encounters since the US president’s abrupt departure from office and global trade.

Observations of disruption

Washington has not yet responded to Zelenskyy’s remarks.

Russia’s offer of top-quality energy at a “lower price” was met with a statement from Kremlin spokesman Dmitry Peskov, who did not respond directly.

However, the Russian oil industry exhibits signs of resurgence.

Lukoil, the second-largest oil producer in the nation, along with state-controlled Rosneft, made a late Monday announcement that it would seek the prompt sale of several overseas assets.

In addition to refineries and gas station networks in various European states, Lukoil holds stakes in oil and gas projects in 11 nations.

Transactions would be conducted under a sanctions grace period that runs until November 21, according to the company, which it claimed is already in conversation with potential buyers.

It further stated that if the fast-tracked transactions were required, it would seek an extension.

Recovering from missiles

Russia’s military is also attempting to increase its pressure by attacking the country’s energy infrastructure.

Zeleneskyy said that long-range strikes on Russian refineries have reduced Moscow’s oil refining capacity by 20%, citing information from Western governments.

He urged allies to support Kyiv in continuing to use longer-range missiles in response to a European Union plan to rob Russian assets to support Ukraine.

He claimed that more fighting needs to be done in the European Union for another two or three years.

We will spend this money on recovery if the war ends in a month. If it doesn’t come to an end in a month but does eventually add up, we will spend it on weapons. Zelenskyy remarked, “We simply have no other choice.”

Uncertain impact

Trump’s military strategy will likely have an impact on how much the focus on Moscow’s oil revenues will affect the country’s economy.

Nearly 20% of China’s total energy imports came from Russia, which was a record 109 million tonnes last year.

India has already indicated that it will reduce purchases in order to comply with US sanctions and imported 88 million tonnes.

Earlier reports claimed that Chinese state oil companies had suspended purchases of sea-borne Russian oil.

Russia’s situation is likely to become even more complicated by the US sanctions against Rosneft and Lukoil. The two companies export 3.1 million barrels of oil annually, which accounts for 70% of Russian crude oil exports.

Source: Aljazeera