Vladimir Putin says Russia won't bow to US pressure over Ukraine after Donald Trump imposes major sanctions

President Vladimir Putin says Russia will never bow to pressure from the United States or any other foreign power, and cautioned that it would deliver an “overwhelming” response to any military strikes deep inside Russia.

US President Donald Trump on Wednesday targeted Russia’s two biggest oil companies with sanctions in a sharp policy shift on the Kremlin’s war in Ukraine, prompting global oil prices to rise by nearly five per cent on Thursday and India to consider cutting Russian imports.

Mr Putin told reporters that foreign sanctions were an “unfriendly” act and “will have certain consequences but they will not significantly affect our economic well-being”.

Russia’s energy sector feels confident, he said.

“This is, of course, an attempt to put pressure on Russia,” Mr Putin said.

“But no self-respecting country and no self-respecting people ever decides anything under pressure.”

Mr Putin, after joking with reporters about how sanctions might prevent other countries importing Russian toilets, recalled that Mr Trump during his first term imposed tough sanctions on Russia.

He warned that disrupting exports from Russia - the world’s second largest oil exporter - would lead to a sharp rise in the price of oil, including at US service stations.

This could be politically uncomfortable for US politicians, he said.

While the extent of the financial hit on Russia may be limited in the short term, the new sanctions are a powerful signal of Mr Trump’s intent to squeeze its finances and try to force the Kremlin towards a peace deal although it is still unclear if India will actually cease buying Russian crude.

Mr Trump, who has described Russia as a “paper tiger,” said on Wednesday he had cancelled a planned summit with Mr Putin.

The US Treasury slapped sanctions on two of Russia’s biggest oil companies.

Mr Putin said that the summit and venue - Budapest - had been proposed by Mr Trump.

“What can I say? Dialogue is always better than some kind of confrontation, than some kind of dispute or, even more so, war,” Mr Putin said.

Asked about a Wall Street Journal report that the Trump administration has lifted a key restriction on Ukraine’s use of some long-range missiles provided by its allies, and remarks by Ukrainian President Volodymyr Zelensky about domestic missiles with a range of 3000km, Mr Putin said: “This is an attempt at escalation.”

“But if such weapons are used to attack Russian territory, the response will be very serious, if not overwhelming. Let them think about it,” he said.

Mr Zelensky said during a visit to Brussels for talks with European Union leaders on Thursday that Ukraine needs funds from Russian frozen assets at the start of next year and that the day’s dialogue on the matter had not been simple.

“The time to act on Russian assets is now,” Mr Zelensky said, addressing EU leaders.

“I urge for your full support,” he said.

“Anyone who delays this decision is not only limiting our defence but also slowing down your own progress.”

Mr Zelensky also said that land swaps with Russia were “not acceptable” and reiterated his position that a ceasefire should precede any talks on a potential solution to end the war.

Belgian Prime Minister Bart De Wever has threatened to block the measure from going ahead, demanding several guarantees from fellow EU leaders.

Belgium is a key player in this issue because the Belgian financial institution Euroclear currently manages a large portion of the Russian assets frozen in the EU.

“I want the full mutualisation of the risk because there is a big risk,” Mr De Wever said, as he arrived at the meeting.

“We want guarantees if the money has to be paid back that every member state will chip in,” he said.

with DPA