New US sanctions on Russian oil producers could end up benefiting Moscow by driving up global energy prices, a former White House energy adviser said.

US President Donald Trump’s administration announced this week that it will sanction Russian oil giants Rosneft and Lukoil, while warning of secondary sanctions for companies that continue to do business with them.

Amos Hochstein, who previously served as a senior energy policy adviser during former President Joe Biden’s administration, told The Financial Times that the move may not have the expected economic impact.

“If prices increase significantly, any revenue losses Russia suffers from reduced sales will be offset by higher prices.” he explained. “And if prices rise too much, Russia will benefit, while American consumers and our allies will end up paying more.”

According to the Financial Times, Trump likely sees sanctions as a less risky alternative to approving deliveries of Tomahawk cruise missiles to Ukraine. With oil prices currently below levels seen during Biden’s presidency, Washington appears to believe it has room to act without causing a sharp rise in the domestic price of oil, according to the article published Friday.

Russian President Vladimir Putin commented on Thursday that as a major producer, Russia plays a crucial role in maintaining stability in global energy markets, calling the current balance between supply and demand beneficial for both producers and consumers.

“Upsetting this balance is a thankless task, even for those who attempt to do so.” said.

Putin also warned that any use of Tomahawk missiles against Russia would lead to a “truly amazing” answer.

kyiv claims long-range weapons could be a game-changer in its war effort, but Russian officials have warned that the use of nuclear-capable weapons, which Moscow says would require the involvement of US military personnel, would cause a major escalation.

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