The United States is reportedly considering easing sanctions on Russia as part of a strategic effort by President Donald Trump to restore diplomatic relations and bring an end to the ongoing conflict in Ukraine.
According to a report in Reuters, the White House has tasked the State and Treasury departments with creating a list of sanctions that could potentially be relaxed. This list is expected to include certain entities and individuals, notably Russian oligarchs, to be used in discussions with Russian representatives.
Despite unclear expectations from Russia in exchange for relief, this move indicates a willingness to modify the existing stance on Moscow. The initiative reflects a shift from previous policies, which saw relations under Joe Biden described as "below zero."
As per the report, a key aspect of the potential sanctions relief involves the global energy market. Russia, as one of the world's leading oil producers, could impact fuel prices should sanctions on its energy sector be eased. This consideration is particularly relevant if the US decides to restrict oil exports from Iran further.
The US imposed strict sanctions on Russia in 2022 following its invasion of Ukraine, including a $60-per-barrel price cap on Russian oil exports. These measures aimed to curb revenue from Russia's substantial oil and gas industry, thereby limiting its ability to sustain the war. However, the Trump administration is open to revisiting these sanctions, with discussions having taken place between US and Russian officials.
Treasury Secretary Scott Bessent has conceded that economic relief for Russia is possible, contingent on the progress of negotiations. President Trump has acknowledged that sanctions might be lifted "at some point." This potential policy change coincides with the extension of a state of emergency related to Ukraine, which has been in place since the annexation of Crimea in 2014.
To lift sanctions on certain entities, Trump might need to issue an executive order and seek congressional approval, according to John Smith, a former Treasury official.
Economically, Russia has been able to sustain its wartime economy through increased military spending and industrial production since 2022. Nonetheless, experts note its vulnerability, emphasising the necessity of Western sanctions relief. The Kremlin has expressed readiness for economic cooperation, particularly in developing its rare earth metal deposits.