New US sanctions to force Russia to peace have been announced
16 January 22:02
Trump’s team is preparing a plan for oil sanctions to put pressure on Russia. This is stated in a Bloomberg article, "Komersant Ukrainian" reports.
According to media reports, advisers to President-elect Donald Trump are developing a wide-ranging sanctions strategy to help reach a diplomatic agreement between Russia and Ukraine in the coming months.
The Trump team is considering two main approaches. One set of policy recommendations – if the new administration believes that the end of the war in Ukraine is near – would include some moves to favor sanctioned Russian oil producers, which could help broker a peace deal, said the people, who requested anonymity because the discussions are private. The second option, they said, could be based on sanctions that further increase pressure to increase leverage.
The approach that Trump will ultimately choose is crucial for the global oil market. Brent crude oil futures have risen by almost $5 per barrel since Biden’s announcement. Some analysts expect further growth, which will lead to higher fuel costs around the world.
It is known that some of Trump’s cabinet nominees, as well as former officials who dealt with sanctions in his first administration, are involved in the strategy discussion, sources say. Several conservative think tanks have also joined the discussion. The transition team has not yet announced who Trump has chosen to fill some key positions related to economic governance.
The Bloomberg article also states that the Trump team’s plans are in the early stages and ultimately depend on the president-elect himself. Thus, last week, Trump said he was preparing to meet with Russian President Vladimir Putin, which raised the possibility of potential negotiations to end the war in the near future.
The first barometer of how the Trump team will handle sanctions against Russia will be mid-March, when the general license that allows the curtailment of purchases of Russian energy expires. If the Treasury Department allows the exemption to expire for some transactions, it could increase pressure on the Kremlin.
