Kathrine Frich
Tensions between Washington and Moscow have deepened after a fiery exchange over the economic toll of Western sanctions.
During a US television interview, a top Kremlin envoy and America’s Treasury Secretary offered sharply different views of Russia’s financial stability.
Clash over sanctions
The dispute began when Kremlin special envoy Kirill Dmitriev claimed that new American sanctions “will have absolutely no effect on the Russian economy.”
Asked about the remarks in an interview with CBS News, US Treasury Secretary Scott Bessent pushed back forcefully, insisting that Moscow is already suffering.
“Well, I think Russia will feel the negative effects immediately,” he said.
“We have already seen India completely stop purchasing Russian oil. Many of the Chinese refineries have stopped operating.”
Bessent went on to dismiss Dmitriev’s comments entirely. “Are you really going to publish what a Russian propagandist says?” he asked.
“I mean, what else could he say? That it’s going to be terrible and that Putin will have to sit down at the negotiating table?”
Economic strain
Calling Russia “a war economy,” Bessent said the country’s growth is “basically zero” and that inflation is “over 20%.”
He argued that the sanctions are designed to reduce oil profits and pressure President Vladimir Putin into negotiations.
“Oil is what finances the Russian war machine, and I think we can substantially reduce its profits,” he said.
Bessent added that Russian oil income has already fallen by 20% since last year and could drop by another 20 to 30% as sanctions take hold.
Expanding restrictions
On 22 October, the Trump administration imposed new sanctions on Rosneft and Lukoil, Russia’s two biggest oil companies, while urging Moscow to agree to a ceasefire in Ukraine.
After the announcement, several Indian refineries reportedly began reassessing their contracts, and some Chinese companies paused Russian crude imports, according to Digi24.
Bessent said the measures show that Moscow’s efforts to shield its economy have failed. “Everything we do will bring Putin to the negotiating table,” he told CBS News.
This article is made and published by Kathrine Frich, who may have used AI in the preparation
