Russia has released a provocative display of its nuclear arsenal on the same day US President Donald Trump authorised tight new sanctions against Moscow’s largest oil exporters.
A broadcast from northern Russia showed Vladimir Putin at a circular desk monitoring the launch of an intercontinental missile, while a submarine simultaneously fired another from the Barents Sea.
Tupolev Tu-95 bombers were also sent aloft to discharge cruise missiles.
It is yet another dramatic escalation of pressure over the war in Ukraine as both sides refuse to budge on their demands.
Moscow later declared the exercise was a test of its nuclear command structure and launch procedures.
‘Immediate ceasefire’: US goes in hard
The spectacle coincided with Trump’s sudden move to cut into the oil revenue financing Russia’s war, targeting energy giants Rosneft and Lukoil, along with dozens of subsidiaries.
The sanctions also extended to banks and companies supporting Russia’s military and industrial base.
“Now is the time to stop the killing and for an immediate ceasefire,” said US Treasury Secretary Scott Bessent, warning that Washington was prepared to take further action if necessary.
In a brief statement, Trump called directly for a ceasefire after cancelling plans for a summit with Putin, admitting peace talks with his Russian counterpart “don’t go anywhere”. Putin has loosely signalled he is open to discussing a way forward with Trump, but nothing has materialised in almost a full year of the Republican’s second term.
The European Union immediately backed the US measures, with European Commission President Ursula von der Leyen speaking to Bessent before issuing her own statement of support.
Hours earlier, Brussels had adopted its 19th package of sanctions, which ban Russian LNG imports in stages beginning six months from now.
British Prime Minister Sir Keir Starmer welcomed the coordinated crackdown, saying “Putin must pay the price for his needless aggression” and that the “killing must end now”.
Markets react immediately
As expected, when Russia’s energy exports were targeted, markets did a backflip.
Oil markets reacted immediately as Brent and WTI crude surged nearly three per cent, lifting prices to two-week highs.
Gold also rebounded after recent losses.
The White House’s decision also unsettled broader markets as talk grew of possible sanctions on software-powered exports to China, fuelling fears of renewed trade wars.
“Everything is on the table,” Bessent said when asked if restrictions could extend to laptops and jet engines.
While Trump insisted the oil sanctions may be “short-lived” if Russia agrees to talks, the twin images of nuclear launches in Russia and tumbling markets served as another uneasy reminder of how delicate the situation is.
Ukraine intensifies strikes as Putin doubles down
The sanctions come as Ukraine has struck deeper into Russian territory, destroying a rocket fuel plant with a British-supplied Storm Shadow missile and sending drones against an oil refinery in Dagestan and a machinery plant in Saransk.
Putin has meanwhile pushed for a settlement confirming Russia’s hold on Crimea and the Donbas, terms that have been vehemently rejected by Kyiv.
Ukrainian President Volodymyr Zelensky said Russia’s latest overnight strikes, which included a drone hit on a Kharkiv kindergarten, proved “thugs and terrorists can only be put in their place by force.”
“Clearly, Russia is growing more brazen,” he said.
He has strong backing from the EU to be at the negotiation table when the eventual ceasefire talks begin, mostly to avoid a scenario where Putin is offered troves of Ukrainian territory in exchange to withdraw his troops.
Zelensky has repeatedly turned to European leaders to intensify military support after three-and-a-half years of shipments. He has just sealed a new agreement with Sweden for Gripen fighter jets and is currently pressing the EU to approve a €140 billion (A$250bn) loan backed by frozen Russian assets.
