US puts Russia’s two biggest oil companies under sanctions

Good morning and welcome back. In today’s newsletter:

• US puts sanctions on Russia’s biggest oil companies

• Andreessen Horowitz seeks to raise $10bn to invest in tech

• Lawyers and accountants criticise Reeves’ tax raid

• Porsche U-turns on strategy

We start the day with the US, which has put Rosneft and Lukoil, Russia’s two biggest oil companies, under sanctions.

What happened: Treasury secretary Scott Bessent yesterday said: “Given President Putin’s refusal to end this senseless war, Treasury is sanctioning Russia’s two largest oil companies that fund the Kremlin’s war machine.” The measure aims to “degrade” Vladimir Putin’s war chest and support Donald Trump’s effort to end the conflict in Ukraine.

Bessent said the US was prepared to take further action. “We encourage our allies to join us in and adhere to these sanctions.”

Why it matters: The move marks the first time the Trump administration has imposed direct costs on Moscow over its full-scale invasion of Ukraine. “These are tremendous sanctions,” the US president said. Read the full story.

Here’s what else we’re keeping tabs on today:

• Central banks: European Central Bank president Christine Lagarde participates at the Euro Summit in Brussels. The Swiss National Bank will for the first time publish minutes of a monetary policy meeting, following last month’s decision on interest rates. Turkey’s central bank makes an interest-rate announcement.

• EU: The bloc’s heads of government meet for the European Council in Brussels.

• Results: American Airlines, Blackstone, Dassault Systèmes, Intel, Kuehne+Nagel, Lloyds Banking Group, Nokia and Orange report earnings. See our Week Ahead newsletter for a fuller list.

Join Sarah O’Connor and John Burn-Murdoch for a live Ask an Expert Q&A today as they tackle your questions on how AI is reshaping the world of work. The conversation coincides with the launch of their newsletter ‘The AI Shift’, which you can sign up to here.

Five more top stories

1. Exclusive: Andreessen Horowitz is aiming to raise about $10bn for new investments, as the Silicon Valley venture capital group seeks to replenish its coffers amid frenzied dealmaking for the top artificial intelligence and defence tech start-ups. Read details of the fundraising.

2. Lawyers and accountants have criticised plans being considered by UK chancellor Rachel Reeves to make partners pay more tax through national insurance contributions, arguing that such a raid would hit a cornerstone of the economy. Read more on the reaction to LLP reform plans.

3. Exclusive: Singapore’s prime minister has warned of a “messy” transition to a post-American order and urged immediate action to promote trade liberalisation and protect global common interests. Read Roula Khalaf and Owen Walker’s interview of Lawrence Wong.

4. Institutional investors have trimmed target allocations to real estate for the first time in 13 years as they unload property fund stakes at steep discounts. Read what’s behind the retreat from the asset class.

5. Germany has stopped the planned sale of two commemorative coins after the cost of their silver content surpassed their face value. The unusual step by the finance ministry highlights the extent of the rally in precious metals. 

The Big Read

Argentina will on Sunday go back to the polls, a crucial test for Javier Milei as he contends with a slowing economy. A shock loss at a regional election plunged his administration into crisis last month. After investors sold off Argentine assets, the US Treasury stepped in with a $20bn rescue. The support may have eased market turmoil but pressure is mounting on the Argentine president. Read more on Milei’s make-or-break moment.

We’re also reading and listening to . . . 

• EU dependency: The likelihood that Trump will weaponise US cloud services may not be huge, but the costs to the bloc if he does are potentially catastrophic, writes Alan Beattie.

• Early prevention: Restricted sugar consumption during infancy substantially reduces the risk of heart disease later in adulthood, an analysis of health records shows.

• The Economics Show 🎧: Tim Leunig, a former adviser to two chancellors, tells the FT’s economics editor Sam Fleming what is needed to jump-start the UK economy.

Chart of the day

Porsche has long been one of the most reliable sources of profits in the Volkswagen stable. The luxury car brand has produced almost 30 per cent of the group’s operating profit in the past three years. But writedowns in its electric-vehicle push and a slump in China have pulled down its shares almost two-thirds from their recent peak, forcing its chief executive to seek a shift in strategy.

Take a break from the news . . . 

There is obvious appeal in the idea that “science” will find your perfect match, but it is not hard to see the shallowness in the promise of an algorithmic pairing. The gap between what dating apps promise and what they deliver is particularly stark, writes Tim Harford.