Russia's Putin defiant in face of US sanctions on top oil companies

Russia’s President Vladimir Putin remained defiant on Thursday after the United States president imposed sanctions on two of the country’s top oil firms.

Donald Trump is hoping the move will squeeze Moscow’s finances and pressure it to end its over three-year-long invasion of Ukraine.

Rosneft and Lukoil together account for almost half of Russia’s total crude oil exports and the sanctions announcement on Wednesday pushed global oil prices up by five per cent.

Putin described Washington's move as an “unfriendly act” which would “not strengthen Russian-American relations”, which he said had “only just begun to recover”.

The European Union also unveiled a fresh wave of sanctions on Russia, substantially increasing pressure on its war economy.

Speaking to journalists in Moscow, Putin vowed not to bend to pressure from the West, as Trump put a planned meeting with the Russian leader on hold.

"It seems he is talking about postponing it. I can say that a dialogue is always better than confrontation, arguments, or, even more so, war,” Putin said.

“That’s why we have always supported continuing dialogue, and we support it now as well," Putin said, warning the sanctions could backfire on Trump by spiking global oil prices.

Imposition of sanctions on the oil companies was the latest twist in Trump’s hot-and-cold efforts to end the war, as Putin refuses to budge from his demands.

Energy revenue is the linchpin of Russia’s economy, allowing Putin leader to pour money into the armed forces without worsening inflation and avoiding a currency collapse.

While he acknowledged the sanctions were serious and would have consequences, he downplayed the impact they would have on the Russia economy.