U.S. Treasury Secretary Scott Bessent hinted on Thursday that Russia could see some easing of U.S. sanctions if it demonstrates a genuine willingness to negotiate an end to the war in Ukraine. In an interview with Bloomberg Television, Bessent suggested that the U.S. is open to adjusting its sanctions policy based on the progress of peace talks, stating, “That’d be a very good characterization.”
Bessent also revealed plans to speak with his Chinese counterpart on Friday, where he will advocate for China to rebalance its economy towards greater consumer spending. This call aligns with long-standing U.S. efforts to encourage China to shift away from its reliance on exports and investment-led growth.
The Treasury Secretary emphasized President Donald Trump’s commitment to resolving the Ukraine conflict swiftly. Trump has previously indicated he may meet with Russian President Vladimir Putin this month to discuss ending the war, though Bessent did not provide specific timing for such a meeting.
Bessent confirmed he would not attend next week’s G20 finance ministers’ meeting in South Africa due to “domestic considerations.” During his Senate confirmation hearing, he had expressed support for increasing sanctions on Russian energy, particularly targeting oil majors, if directed by Trump.
The Treasury chief also criticized Ukrainian President Volodymyr Zelenskiy for failing to sign a $500 billion deal to supply critical minerals to the U.S., describing the agreement as part of an “elegant plan” to strengthen ties between Ukraine and the U.S. Zelenskiy, however, rejected the proposal, arguing that the U.S. had not provided sufficient security guarantees or aid to justify such a repayment.
On China, Bessent reiterated the need for economic reforms to boost domestic consumption, a message consistently delivered by his predecessors. Despite years of U.S. urging, China has continued to prioritize investment and export-driven growth.
Bessent also addressed U.S. debt management, stating that any shift towards issuing longer-term Treasury bonds is unlikely in the near term due to challenges such as the Federal Reserve’s quantitative tightening program. He dismissed speculation about revaluing U.S. gold reserves to reduce borrowing needs or fund a sovereign wealth fund.