The United States has prepared a new round of sanctions targeting key sectors of Russia’s economy but is holding off on implementing them as President Donald Trump’s administration presses European allies to take the next major steps against Moscow, U.S. officials said on Friday.
According to multiple officials familiar with the matter, the White House is considering penalties against Russia’s banking sector and oil infrastructure if President Vladimir Putin continues to stall peace efforts in Ukraine. The discussions come just days after Washington imposed its first set of sanctions on Russia since Trump returned to office in January, targeting energy giants Lukoil and Rosneft.
The move sent global oil prices soaring by more than $2 a barrel and prompted Chinese and Indian buyers of Russian crude to look for alternatives.
Senior administration officials said Trump wants Europe to “make the next big move,” possibly through additional sanctions or tariffs. “We have a comprehensive toolkit ready,” one U.S. official told Reuters, “but we want to see our allies step up first.”
Trump, who has cast himself as a global peacemaker, has acknowledged that ending Russia’s three-year war in Ukraine has been “harder than expected.” While the U.S. has discussed using frozen Russian assets to fund Kyiv’s defense and rebuild its war-torn economy, officials say such measures remain in the early stages.
In Congress, bipartisan efforts are underway to revive a long-stalled sanctions bill, which Trump is reportedly open to endorsing, though not this month. Meanwhile, Ukraine has urged Washington to expand its restrictions, including cutting all Russian banks off from the dollar system, proposals U.S. officials have not yet embraced.
The latest sanctions decision followed a week of confusion over Trump’s Ukraine policy. After an initial call with Putin and plans for a meeting in Budapest, Trump reversed course, saying “it just didn’t feel right.” Russian envoy Kirill Dmitriev, however, told CNN that the meeting was merely postponed and that the two leaders remained in contact.
Ukraine, for its part, welcomed the recent U.S. actions. “Dismantling Russia’s war machine is the most humane way to bring this war to an end,” said Halyna Yusypiuk, spokesperson for the Ukrainian Embassy in Washington.
Behind the scenes, the U.S. has also shifted oversight of intelligence-sharing for Ukrainian long-range strikes from the Pentagon to European Command in Germany, a move seen as a signal of Washington’s growing readiness to harden its stance on Russia.
Still, Trump has declined to supply Ukraine with long-range Tomahawk missiles, citing escalation concerns. Treasury Secretary Scott Bessent has urged the European Union to follow Washington’s lead with tougher measures, but EU officials warn that fully sanctioning companies like Lukoil could be difficult given their deep ties to Europe’s economy.
“I think we need to find a way to disengage before we can fully sanction,” one senior EU official said.
The administration’s careful balancing act, between diplomatic outreach and economic pressure, underscores Washington’s attempt to maintain momentum in a complex conflict that shows few signs of abating.
Source: Reuters
Written By Rodney Mbua
