Trump Considers Easing Russia Sanctions

Aakhir Tak – In Shorts

• The Trump administration weighs easing sanctions on Russia to restore ties.
• The White House asks State and Treasury to draft a list of potential sanctions relief.
• In return for sanctions relief, the US might seek economic or political concessions.
• Russia possesses rare earth metal deposits, potentially seeking a deal with the US.
• A mineral deal with Ukraine failed to materialize, frustrating the Trump administration.

Aakhir Tak – In Depth

US President Donald Trump is considering easing sanctions on Russia. The aim is to restore relations with Moscow and end the ongoing war in Ukraine. According to a US official and another person familiar with the matter, the White House has requested the State and Treasury departments to draft a list of sanctions that could be eased. This would allow US officials to discuss potential sanctions relief with Russian representatives in the coming days. These discussions are part of the administration’s broader effort to improve diplomatic and economic relations with Moscow.

Sources indicate that the sanctions offices are now preparing a proposal to lift sanctions on select entities and individuals, including some Russian oligarchs. Options papers are typically drafted by officials working on sanctions. The White House’s specific request underscores Trump and his advisers’ willingness to ease Russian sanctions as part of a potential deal with Moscow.

It remains unclear what Washington might specifically seek in return for any sanctions relief.

Russia is among the world’s largest oil producers. If US sanctions on its energy system were eased, it could potentially prevent fuel prices from rising in the event that Trump cracks down on oil exports from OPEC-member Iran.

The White House, the State Department, the Treasury Department, and the Russian embassy in Washington did not immediately respond to requests for comment.

Last year, the Kremlin described relations with the United States as “below zero” under the administration of Joe Biden. Biden supported Ukraine with aid and weapons and imposed tough sanctions on Russia to punish it for its 2022 invasion.

However, Trump, who has promised a quick end to the war, has swiftly shifted US policy to open talks with Moscow. This began with a phone call to Russian President Vladimir Putin on February 12, followed by meetings between US and Russian officials in Saudi Arabia and Turkey.

Since the 2022 invasion of Ukraine, US sanctions on Russia have included measures aimed at limiting revenues from the country’s vast oil and gas industry. They also aimed to weaken Russia’s ability to fund the war. Western governments, led by Washington, imposed a $60-per-barrel price cap on Russia’s oil exports.

In January, Trump threatened to ramp up sanctions on Russia if Putin was unwilling to negotiate an end to the war in Ukraine. More recently, Trump administration officials have openly acknowledged the possibility of easing sanctions on Moscow.

Treasury Secretary Scott Bessent stated during a February 20 interview with Bloomberg Television that Russia could win economic relief depending on its approach to negotiations in the coming weeks. Trump told reporters on February 26 that Russian sanctions could be eased “at some point.”

The White House requested that State and Treasury officials devise a possible sanctions relief plan before Trump extended a state of emergency regarding the situation in Ukraine last week, US sources said.

The state of emergency sanctions certain assets and individuals involved in Russia’s war. These measures, imposed by the Obama administration, have been in place since March 2014, when Russia annexed Crimea.

It remains unclear which Russian sanctions the Trump administration would consider lifting first.

Trump could issue an executive order to begin the process of easing certain Russian sanctions. However, he would also need congressional approval to lift measures on specific entities, according to John Smith, a partner at Morrison Foerster law firm and former head of the Treasury Department’s Office of Foreign Assets Control.

Since 2022, Russia has managed to build a wartime economy with increased military spending and industrial production. However, experts believe that the country’s economy is vulnerable and in desperate need of Western sanctions relief.

Russia claims it is open to economic cooperation. Last week, the Kremlin stated that Russia has substantial deposits of rare earth metals and is open to deals to develop them. This statement followed Putin’s suggestion of such collaboration with the US.

Any formal economic deal with Moscow would likely require the US to ease sanctions.

Trump has been pursuing a minerals deal with Ukraine – home to abundant lithium deposits and rare earth minerals – as repayment for billions of dollars in US aid. However, no deal was signed after an Oval Office meeting between Trump and Ukraine’s President Volodymyr Zelenskyy on Friday.

Aakhir Tak – Key Takeaways to Remember

• The Trump administration is considering easing sanctions on Russia.
• The White House has requested relevant departments to prepare a list.
• A potential deal might involve economic cooperation offered by Russia.
• Russia is willing to collaborate with the US in developing rare earth metals.
• The Trump administration is frustrated by the failure of a mineral deal with Ukraine.

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