Putin admits that Western Sanctions have started to affect Russia's Oil and Gas Industry

On Thursday, President of Russia Vladimir Putin admitted that the sanctions imposed by the Western alliance have started to hurt the Oil and Gas industry of Russia. He also warned that further global disruption to the country's oil sector could exhibit "extremely painful" consequences for those aiming to crush Russia's economy. As per the media reports, President Putin said this during a government video meeting from his home near Moscow on Thursday. The president also said banks from "unfriendly countries" were putting pressure on Russian energy exports by delaying the transfer of payments. The Russian President’s acknowledgment comes as many of Russia's biggest energy customers in the European Union are planning to reduce Russian oil and gas deliveries in a bid to show solidarity with Ukraine and financially strain Russia.

The massive trading bloc has resisted the move so far because of the large costs it would incur for many European countries, but officials are growing uncomfortable continuing to finance Moscow amid the conflict in Ukraine. Following the Russian invasion of Ukraine, the United States and Canada imposed a complete ban on Russian oil and gas imports. This eventually led to sky-high fuel prices in these countries.  However, the European Union has not yet issued a full ban, it has put some sanctions on the sector's funding and technology and some trading firms are completely refraining from purchasing Russian energy. Amidst the Western sanctions imposed with the aim to decrease reliance on Russian energy sources, Putin warned that those aiming to shut out Russian suppliers would face consequences.