US sanctions on Moscow’s oil sector are set to severely limit Russian fossil fuel exports to India and China, according to analysts. The move, which is Washington’s toughest yet, will likely force New Delhi and Beijing to seek alternative suppliers in the Middle East, Africa, and the Americas.
The European Union’s decision to pull back from Russia has led to both countries becoming major buyers of Russian crude oil. However, the new sanctions will significantly impact these exports, with one Singapore-based trader warning that Chinese shipments will “drop off a cliff.”
The increased demand for alternative suppliers will likely drive up oil and shipping prices, according to Russian economy outlet The Bell. As President-elect Donald Trump’s inauguration draws near, it appears that Washington is willing to take a tough stance on Moscow.
Meanwhile, Qatar has presented a final draft of a Gaza truce deal, which includes a ceasefire and hostage release agreement. However, the approval of the deal still depends on Hamas’ de facto leader Mohammed Sinwar, who may respond within 24 hours.
Additionally, California wildfires continue to rage, with at least 16 people killed so far. President-elect Donald Trump has criticized local officials for their response, while Governor Gavin Newsom has condemned the spread of false information as “hurricane-force winds.”
In other news, Ukraine has captured two North Korean soldiers, providing what Ukrainian President Volodymyr Zelenskyy calls “indisputable evidence” of Pyongyang’s involvement in Russia’s war effort. A Japanese startup, Ispace, is set to launch a lunar lander this week, which will attempt to become the first Asian company to land on the Moon.
India’s IPO market has also seen significant growth this year, with almost as many public debuts as the US and China combined. The country is poised to finish the year as the world’s most buoyant IPO market, driven by its own bull market and growing economy.
Source: https://www.semafor.com/article/01/12/2025/us-sanctions-on-russian-oil-to-hit-china-and-india-hard