In a strong and unprecedented statement, US Treasury Chief Scott Bessent warned that imposing tariffs on countries purchasing Russian oil will inevitably cause the Russian economy to collapse. This warning comes amid heightened tensions over the ongoing war in Ukraine and growing international debate over how best to curtail Russia’s ability to sustain its military aggression.
During an interview with NBC News, Bessent said:
“We are in a race against time. The longer Russia continues to sell its oil without meaningful restrictions, the longer this brutal war drags on. Tariffs on oil-buyers are not just a tactic – they are an economic strategy that will collapse the Russian economy if fully implemented.”
A Strategic Shift in Sanctions Policy
Previously, Western sanctions largely focused on targeting Russian banks, oligarchs, and select industries. However, with Russia’s fossil fuel exports providing a critical financial lifeline, the US has shifted its focus to the countries that continue to purchase oil from Russia, particularly India and China.
Currently, the US has implemented a 50% tariff on Indian imports of Russian oil, reflecting Washington’s frustration at New Delhi’s continued trade with Moscow despite Western sanctions. In addition, a 145% tariff on Chinese oil imports from Russia was announced but temporarily suspended for 90 days to give Beijing time to adjust its energy policies.
Scott Bessent made it clear that these measures are designed not as punishment of India or China but as a necessary step to force Russia’s hand in ending the conflict.
“If we do not act now, Russia will continue to fund its war machine through unchecked oil revenues. These tariffs are a necessary lever to force Moscow to the negotiating table.”
Global and Regional Reactions
The announcement has drawn sharp criticism, particularly from India.
India’s Foreign Ministry responded, calling the tariffs “unjustified and unreasonable,” stressing its sovereign right to make independent energy procurement decisions. Indian officials emphasized that purchasing oil is a matter of national interest and survival for a growing economy.
China, meanwhile, has remained mostly silent, focusing instead on securing alternative supplies and mitigating any economic impact from the potential implementation of tariffs.
European leaders have expressed support for stronger action against Russia but emphasize a balanced approach that prevents global economic disruption.
European Commission President Ursula von der Leyen commented:
“We must be resolute in holding Russia accountable, but also pragmatic in implementing measures that avoid a global energy crisis.”
The Real Threat: Economic Collapse of Russia
According to Treasury Chief Bessent, the cumulative impact of these sanctions and tariffs could collapse the Russian economy over the coming months.
“Russia’s economy is hanging by a thread. Its primary revenue source is fossil fuel exports. Cut off those buyers, and Russia’s economic structure will implode.”
This warning comes at a time when Russia is struggling to maintain economic stability. The Russian ruble has already seen major devaluations, inflation is soaring, and foreign reserves are dwindling. Experts estimate that without substantial revenue from oil and gas exports, Russia may face defaults and massive capital flight.
Dr. Elina Petrova, a leading economist specializing in energy markets, explained:
“The current sanctions already strain Russia’s economy, but targeting its oil customers is the critical blow. If the US and its allies act decisively, Russia could face systemic collapse, unable to fund its military or maintain domestic stability.”
The Humanitarian Angle
While the geopolitical and economic arguments dominate the headlines, the humanitarian consequences of the war remain dire.
Over 300,000 children in Ukraine and Russia are suffering due to the economic strain caused by sanctions and war disruptions. Hospitals are overwhelmed, food insecurity is rising, and millions are displaced from their homes.
UNICEF and other humanitarian agencies have urgently called for ceasefire negotiations to allow relief efforts and prevent further civilian casualties.
“We are witnessing a growing humanitarian catastrophe,” said UNICEF spokesperson Leila Moradian.
“Children, women, and the elderly are caught in the crossfire of political and economic gamesmanship.”
What Comes Next?
President Donald Trump’s administration has indicated readiness to impose a “second phase” of sanctions. This next wave is expected to include stricter measures against other sectors supporting the Russian war effort, such as industrial supplies, banking services, and advanced technology exports.
The effectiveness of these sanctions hinges on international cooperation. Without alignment from major oil buyers, especially China and India, the full impact may be blunted. However, if key countries adjust their purchasing behavior, the economic collapse Bessent forecasts could become a reality within months.
Conclusion: A Critical Crossroad
The bold declaration by the US Treasury Chief underscores a pivotal moment in the geopolitical landscape. The decision to impose tariffs on oil-buyers will lead to Russian economy collapse is both a high-stakes gamble and a calculated strategy to force peace.
The coming months will determine whether this economic pressure will compel Russia to retreat from Ukraine or deepen its intransigence. Meanwhile, millions of civilians remain caught in the humanitarian fallout.
The world waits as diplomacy stalls and the war grinds on. The choice between decisive action and prolonged suffering has never been clearer.
