News about sanctions

Overnight on October 17, Ukraine launched one of the largest drone attacks on Russia this year, targeting an oil facility despite a request from US President Donald Trump to stop hitting Russian energy infrastructure. Russia's Defense Ministry said it shot down 1,015 Ukrainian drones overnight into October 18, and that the St. Petersburg oil port, an Ozon logistics center and a VKontakte data center were among the targets. Trump criticized Zelensky for not wanting to end the war, while Zelensky said US siding with Russia would be a 'historic mistake' and noted that US intelligence sharing had been paused for three days. Trump also lifted sanctions on Russian diesel imports, and Zelensky said Russia had attacked Ukrainian energy sites 76 times since the energy ceasefire was announced.

Asian shares were mixed on Monday as tech stock volatility persisted, with South Korea's Kospi up 1.8% to 5,768.01 but still more than 17% below its June peak above 9,000. Japan's Nikkei 225 lost 0.6%, while China's Shanghai Composite rose 0.4% after the economy grew 4.5% in the July-September quarter. Indonesia's index fell over 5% at one point after MSCI warned it could downgrade the country's emerging market status. Oil fell more than 2% after President Donald Trump waived sweeping sanctions on Russia, including energy, likely allowing more Russian energy exports. Brent crude dropped 2.5% to $107.16 a barrel.

Asian shares were mixed on Monday as volatility in technology stocks persisted, while U.S. equity futures edged higher. Oil fell more than 1% after President Donald Trump waived sweeping sanctions on Russia, including on Russian energy, with Brent down 1.8% to $107.86 per barrel. South Korea's Kospi rose 1.1% to 5,729.58 but is down more than 18% over the past month, while Japan's Nikkei 225 lost 0.8% to 64,799.03. Indonesia's stock index fell another 5% to its lowest since 2020, after plunging over 11% on Friday following an MSCI warning about a possible downgrade. Tech shares have been sold off recently over concerns about the sustainability of the AI boom, and on Friday the S&P 500 fell 1.1% and the Nasdaq sank 2.1%.

Asian shares were mixed Monday as volatility in technology stocks persisted, while U.S. futures edged higher ahead of another busy earnings week. South Korea's Kospi rose 1.1% to 5,729.58 but remains more than 18% lower over the past month and far below the 9,000 level it crossed at its June peak, while Japan's Nikkei slipped 0.8% and Indonesia's index plunged 5% to its lowest since 2020 after MSCI flagged a possible downgrade from emerging-market status. Oil fell more than 1% after Trump waived sweeping Russia sanctions, with Brent down 1.8% to $107.86 a barrel. Wall Street had closed lower Friday, with the S&P 500 down 1.1% and the Nasdaq sinking 2.1%. Oil remains elevated compared with levels before the Iran war, with Middle East supply risks still adding upward pressure.

US President Donald Trump defended his decision to waive some sanctions on Russia and said Ukrainian President Volodymyr Zelensky is not sincere about ending the war. Trump suspended a new Russia sanctions law by executive order and temporarily waived sanctions on Russian diesel, allowing large volumes of Russian oil into global markets before the November 3 election. He accused Zelensky of targeting Russian diesel refineries, which hurts the global diesel market including the US, while polls suggest Trump's Republican Party risks heavy losses over soaring fuel prices. Zelensky said he felt betrayed by Trump after Ukraine launched a drone attack on an oil depot in St. Petersburg in the early hours of October 18, despite Trump's request to stop hitting Russian energy facilities. Russian Foreign Minister Sergey Lavrov said Zelensky has no desire for a peace deal.

President Donald Trump struck a deal with Vladimir Putin for a fresh supply of Russian diesel to lower US fuel costs, but prices barely moved and the move drew a furious backlash from both parties. The announcement on October 9 came alongside a waiver relieving Russia from a new round of sanctions under a bill Trump had recently signed into law. Russian envoy Kirill Dmitriev said on October 16 that the US and Russia will soon announce an agreement on data center infrastructure, adding to political pressure on Republicans as data centers that have spread into suburban and rural areas draw anger over energy and water use ahead of the 2026 midterms. Time reminded Trump in a September 28 interview that 71% of Americans oppose building data centers and 57% say AI will do more harm than good. Trump defended data centers, saying they would lower taxes, while adding that he did not want them right next to his house.

Asian shares fell on Monday, October 19, as worries about AI's huge funding needs weighed ahead of a busy earnings week, while the euro eased after rioting in France. Oil prices dropped after Trump waived some Russia sanctions, though he later said no final decision had been made, with Brent down 1.6% to US$108.06 a barrel; Iran also reported another tanker hit a mine in the Strait of Hormuz. Tech weakness hit Asia, with Japan's Nikkei down 2.0% and South Korea down 1.6%, after the PHLX Semiconductor Index shed 11.4% last week, its longest losing streak since 2008. Goldman Sachs estimates five AI hyperscalers will lift capital spending to about US$1.2 trillion next year, while AMP economist My Bui warned that rising yields raise financing costs. Gold rose 0.4% to US$4,181 an ounce as yields fell.

According to the Wall Street Journal, citing a former Russian intelligence officer, Vladimir Putin reportedly proposed a summit with Donald Trump and Xi Jinping to end the Ukraine war, without Zelenskyy and unconfirmed. The report comes as European allies and some Republicans voice alarm over the U.S. temporarily lifting sanctions on Russian diesel exports, which Zelenskyy said seems wrong. Trump's “energy ceasefire” announced on October 11 did not stop Moscow's strikes on Ukraine's infrastructure, and Ukraine paused its strikes for three days before resuming them. Kyiv also accused Washington of restricting Starshield, the military-grade version of Starlink, cutting connectivity for fast platforms such as interceptor drones; Trump denied the White House ordered this, while Elon Musk said Starshield is controlled by the U.S. government.

Hungarian Prime Minister Peter Magyar expects U.S. President Donald Trump to keep extending Budapest's exemption from U.S. sanctions on Russian energy, after Trump eased curbs on Russian diesel exports to lower fuel prices before the Nov. 3 midterm elections. The deal drew criticism in the EU, with Italian PM Giorgia Meloni calling it a ‘very risky’ gamble, while Bulgarian PM Rumen Radev backed it. Moscow pledged 300,000 tons of diesel immediately and another 500,000 tons next month. Hungary, which relies on Russia for about 90% of its crude oil according to S&P Global data for 2025, is exempt until November, and Magyar argued that not extending the exemption for at least another year would be unreasonable. Ukraine opposed the deal, with President Zelensky calling it ‘weak’.

Treasury Secretary Scott Bessent told NBC's Meet The Press that energy prices would fall once the Iran conflict ends, but he did not say when hostilities would stop. Inflation reached 3.7% in September, a five-month high driven by energy and gas prices, while food was flat, prescription drug prices fell and median rents were 0.4% lower year on year, according to Apartment List. The national average gas price was about $4.30 per gallon as of October 18, versus about $2.98 at the start of the Iran war. Bessent defended the administration's waiver of Russian sanctions, citing sanctions on Rosneft and Lukoil, and called Zelensky's claim that the U.S. restricted Ukraine's Starshield access 'reckless' and untrue. Asked whether the U.S. considers Ukraine an ally, he avoided a direct answer and said such matters belong to the president or the secretary of state.

Billionaire Sir Richard Branson, founder of Virgin Group, used a LinkedIn post on Oct. 18 to criticize Trump's Russia policy, arguing that easing energy sanctions on Moscow and restricting technical support to Kyiv compromise Western security. He objected to a commercial diesel deal with Russia, which he said injects revenue into Moscow's budget during active fighting, and to limits on Ukrainian forces, including delayed missile warnings and throttling of Starshield. Branson urged European leaders to provide decisive military and financial support to Ukraine, including using frozen Russian assets and delivering Germany's Taurus missiles. The appeal comes as EU leaders asked the European Commission to draft proposals to cover Ukraine's projected €70 billion ($79 billion) shortfall for 2027, potentially using proceeds from roughly €210 billion in immobilized Russian sovereign assets.

Iran's Foreign Minister Abbas Araqchi says Tehran's offer to reopen the Strait of Hormuz within seven days remains on the table, though Iran's security chief said talks stalled because Washington did not address all seven conditions. Iran wants the lifting of the US blockade on its ports and of sanctions on its oil exports, plus an end to hostilities on all regional fronts; if accepted, the strait could reopen within six days, with talks resuming the next day. Washington insists on addressing Iran's nuclear program from the outset, and Vice President JD Vance has said Iran must make a 'meaningful' cut to uranium enrichment capacity to end the eight-month war. Meanwhile, Iran's Revolutionary Guards navy says two oil tankers caught fire after hitting naval mines, a claim not independently confirmed, and maritime officials reported that a container ship and a dry bulk carrier sank near the strait after being hit by projectiles.

U.S. Secretary of State Marco Rubio said President Donald Trump will take up to 60 days to assess the economic impact of sanctions and tariffs on Russia, amid the Ukraine conflict and the war with Iran, which have disrupted global energy supply and pushed fuel prices higher. On October 16, Trump signed an order suspending key measures under the Graham Act, but on October 17 he said no final decision had been made, and the order did not specify how long the suspension would last. The measures include tariffs on Russian goods and sanctions on countries buying Russian oil and gas, and also tariffs on goods from countries that import Russian energy, including India. Trump also said Russia would initially supply more than 300,000 tons of diesel to the U.S., while Ukrainian President Volodymyr Zelensky warned the move could embolden Vladimir Putin and prolong the war.

Trump has blocked numerous Russia sanctions two days before they were due to take effect, deepening his row with Ukrainian President Volodymyr Zelensky. The sanctions were passed by Congress and signed into law by Trump in September, but his executive order on Friday night said suspending some was in the US 'national interest', drawing backlash from US lawmakers. Ties with Kyiv have frayed after the US struck a controversial deal to import Russian diesel, and Ukraine accused the administration of withdrawing key military support. The law gave Trump power to levy tariffs of up to 100% on the top five buyers of Russian oil and gas, mainly China and India, and targeted Putin, Russian banks and the 'shadow fleet', but many of these provisions are now waived. Democrats including Virginia Congressman Don Beyer accused Trump of capitulating to Moscow and betraying Ukraine.

Ukrainian Foreign Minister Andrii Sybiha says Russia has systematically stepped up targeted strikes on Ukraine's power grid, citing 76 attacks on energy infrastructure since US President Donald Trump announced an “energy ceasefire” a week ago. In the past seven days alone, Russia reportedly launched nearly 2,700 strike drones, 1,700 guided aerial bombs and 66 missiles, most of them high-speed ballistic missiles aimed at municipal utilities. Sybiha argues that easing sanctions or offering economic concessions would only give Moscow more revenue to fund its military operations ahead of winter, and he urges partners to increase pressure. His remarks came amid disputes over Trump's October 16 executive order waiving mandatory Russia sanctions and the October 9 arrangement allowing Russian refined diesel exports under a US Treasury general license.