The U.S. government is actively exploring ways to swiftly ease sanctions on Russia’s energy sector as part of a broader strategy to incentivize an end to the Ukraine war, according to two anonymous sources familiar with the matter. While earlier reports indicated plans to lift sanctions on select Russian entities and individuals, it remains unclear whether the initiative will extend to Russia’s vast oil and gas industry, a critical revenue source for Moscow.
Russia, one of the world’s largest oil and gas producers, has faced severe sanctions targeting its energy exports, including a U.S.-led effort to cap the price of Russian oil at $60 per barrel. These measures aim to curb the Kremlin’s ability to fund its military operations. However, the White House has directed the Treasury Department to prepare options for rolling back energy sanctions in anticipation of potential peace talks between U.S. President Donald Trump and Russian President Vladimir Putin.
The sources emphasized that any easing of sanctions would be contingent on Russia making significant concessions to end the conflict. President Trump has expressed plans to meet Putin in Saudi Arabia in the coming weeks to negotiate a resolution to the three-year-old war, with analysts suggesting that sanction relief could be a key component of any agreement.
Despite these efforts, Trump has also threatened to impose additional large-scale sanctions on Russia, particularly after recent attacks on Ukrainian energy infrastructure. These strikes followed the U.S. decision to pause aid and intelligence sharing with Ukraine, further complicating the geopolitical landscape.
The Treasury Department’s review includes assessing the potential impact of Russia’s full return to global energy markets, including effects on oil prices and trading patterns. Since 2014, the U.S. has imposed a series of sanctions targeting Russia’s energy, finance, and defense sectors in response to its annexation of Crimea. The Trump administration aims to avoid delays in lifting sanctions, as seen in 2019 when disruptions in removing sanctions on Russian aluminum producer Rusal caused significant market turmoil.
Meanwhile, China and India continue to purchase Russian oil, though payment and insurance challenges have hindered smooth deliveries. The U.S. strategy seeks to balance pressure on Russia with the need to stabilize global energy markets and avoid unintended economic consequences.