The U.S. government is exploring the possibility of easing sanctions against the Russian energy sector as part of a broad plan that would allow Washington to quickly lift restrictions if Moscow agrees to end the war in Ukraine, two sources familiar with the matter told Reuters.
Earlier this week, Reuters reported that the United States was developing plans to possibly lift Russian sanctions on certain entities and individuals, but it was not clear at the time whether the initiative would include Russia’s vast oil and gas industry.
The White House has asked the U.S. Treasury Department to study the possibility of easing energy sanctions ahead of expected talks between President Donald Trump and Russian ruler Vladimir Putin to end the war in Ukraine, two sources said on condition of anonymity.
This will allow Washington to quickly lift sanctions if a peace deal is reached, according to the sources, who made clear that the effort should not be considered a sign that the US will lift sanctions without concessions from Russia.
Trump has said he plans to meet with Putin in Saudi Arabia in the coming weeks to discuss an agreement to end the war in Ukraine. Analysts say sanctions relief is a likely centerpiece of any deal.
To the contrary, Trump also raised the prospect of more extensive U.S. sanctions against Russia amid efforts to force Ukraine and Russia to start negotiating a peace deal.
Trump’s threat came after Russian troops attacked Ukraine’s energy and gas infrastructure on the night of Friday. The Russian attack was the first since the United States suspended aid and intelligence sharing with Ukraine.
Consideration of lifting energy sanctions is part of a broader review of US actions against Russia, which includes the potential lifting of sanctions against certain entities and individuals, including some Russian oligarchs.
According to the sources, the Trump administration wants to be able to act quickly to lift sanctions and avoid delays due to insufficient preparation to avoid the upheaval that has occurred in the past when other sanctions have been lifted.
For example, delays in lifting US sanctions on Russian aluminum producer Rusal in 2019 led to disruptions in the transportation, construction, and packaging industries and contributed to a 30 percent jump in aluminum prices.
The U.S. Treasury Department is also studying how Russia’s full presence will affect global oil prices and how it could change trade patterns that have shifted European markets from Russian to American supplies.
