Alaska summit collapse may trigger sanctions on Rosneft and Lukoil
Russian oil giant Rosneft (photo: Getty Images)
The failure of the Alaska summit could result in unpleasant consequences for Russian President Vladimir Putin. In particular, the United States is exploring the possibility of imposing sanctions on Rosneft and Lukoil, Bloomberg reports.
Sanctions may be imposed as part of measures aimed at forcing Putin to agree to a ceasefire with Ukraine. According to sources, the potential restrictions are intended to undermine Russia's oil revenues, but sanctions will only be imposed if the Alaska summit ends in failure.
Trump, sources said, hopes such a move would be temporary, as sanctions could negatively impact global oil prices.
In addition to sanctions against Rosneft and Lukoil, the United States is considering further restrictions on Russia's shadow fleet of aging tankers, as well as the continuation of a policy of additional tariffs on buyers of Russian energy resources. In this case, China may come under the tariff hammer.
Sources also stated that sanctions may be implemented gradually, rather than immediately or all at once.
"State-controlled Rosneft, headed by Putin's close ally Igor Sechin, and privately held Lukoil are the two largest Russian oil producers, jointly accounting for nearly a half of the nation's total crude-oil exports, or around 2.2 million barrels a day in the first half of this year," the publication explains.
In addition to sanctions, Trump's circle is privately discussing the possibility of offering certain "carrots" to Putin. In this way, they seek to "reward" him for a willingness to reach a peace agreement on Ukraine.
Alaska summit: What is known
Trump and Putin have already begun their meeting in Alaska. It is being held in a three-on-three format — although both leaders had previously planned to speak one-on-one.
More on what preceded the US–Russia summit in Alaska and what to expect next — in a separate analytical piece by RBC-Ukraine.
