U.S. could hit Russia with more sanctions over Ukraine war, but also wants Europe to increase pressure

The Trump administration has prepared a new round of sanctions targeting key sectors of Russia’s economy if President Vladimir Putin continues to delay efforts to end Moscow’s war in Ukraine, according to U.S. and diplomatic sources familiar with the matter.

U.S. officials have also informed European counterparts that Washington supports the EU’s plan to use frozen Russian assets to purchase U.S.-made weapons for Kyiv. Internal discussions have also begun on whether Russian assets held in the United States could be leveraged to assist Ukraine’s war effort, officials said.

Although it remains unclear whether these measures will be implemented soon, the readiness of such sanctions demonstrates the administration’s intent to escalate pressure following Trump’s first wave of sanctions on Wednesday—the first since he returned to office in January.

Trump has sought to position himself as a global peacemaker but has acknowledged that achieving peace between Russia and Ukraine has proven more difficult than expected. His meeting with Putin in Alaska in August yielded no progress, and Trump told reporters in Doha on Saturday that he would not meet with the Russian leader again unless a peace deal seemed likely. “I’m not going to be wasting my time,” he said.

European allies, wary of Trump’s shifting tone toward Putin, hope Washington maintains pressure on Moscow. A senior U.S. official told Reuters that European nations should take the next major step, potentially through additional sanctions or tariffs. Another insider noted that Trump may pause further action temporarily to observe Russia’s response to the most recent measures.

The sanctions announced Wednesday targeted Russian oil giants Lukoil and Rosneft, sending oil prices up by more than $2 and prompting Chinese and Indian buyers to seek alternative suppliers. Trump said he plans to discuss China’s purchases of Russian oil with President Xi Jinping during their meeting on Thursday, noting that “China is cutting back very substantially, and India is cutting back completely.”

Banking and Energy Targets

Sources said the next possible round of U.S. sanctions could hit Russia’s banking sector and the infrastructure used to export oil. Ukrainian officials have reportedly proposed additional measures, including cutting all Russian banks off from the dollar-based financial system. It remains unclear whether Washington will act on these requests.

Some U.S. senators are also pushing to revive a long-stalled bipartisan sanctions bill. Trump is reportedly open to endorsing it but is unlikely to do so this month. The Treasury Department declined to comment.

Kirill Dmitriev, President Putin’s special envoy for investment and economic cooperation, said Friday that he believes Russia, the United States, and Ukraine are nearing a diplomatic resolution. Halyna Yusypiuk, spokesperson for Ukraine’s embassy in Washington, welcomed the sanctions but declined further comment. “Dismantling Russia’s war machine is the most humane way to bring this war to an end,” she wrote in an email.

A Week of Policy Whiplash

The sanctions announcement capped a tumultuous week for the administration’s Ukraine policy. Trump had spoken with Putin last week and unexpectedly announced plans to meet him in Budapest, surprising Kyiv. The following day, he met Ukrainian President Volodymyr Zelenskyy in Washington, where U.S. officials reportedly urged him to concede territory in the Donbas as part of a land-swap deal to end the conflict. Zelenskyy rejected the proposal, and Trump left the meeting believing the war should instead be “frozen” along existing frontlines.

Days later, Russia sent a diplomatic note to Washington reiterating its peace terms. Shortly afterward, Trump told reporters that the planned Budapest meeting with Putin was off, saying “it just didn’t feel right.”

However, Russian envoy Dmitriev told CNN on Friday that the meeting had not been cancelled entirely and could still take place at a later date. Two U.S. officials privately said Trump’s initial enthusiasm for meeting Putin was likely misplaced optimism following his success in brokering a Gaza ceasefire.

Ultimately, Trump decided to impose sanctions during a Wednesday meeting with Treasury Secretary Scott Bessent and Secretary of State Marco Rubio, according to a senior White House official.

Copied