Washington Eyes Russian economy, oil, and banking sector amid ongoing Ukraine war
The United States is preparing additional sanctions on Russia if President Vladimir Putin fails to end Moscow’s war in Ukraine, according to U.S. officials. The potential measures target key areas of the Russian economy, including the banking sector and oil infrastructure, and reflect Washington’s broader push for Europe to step up pressure on Moscow.
While it is unclear whether these moves will be implemented immediately, officials say the administration has a well-developed toolkit to escalate sanctions. The announcement follows President Donald Trump’s first set of sanctions on Russia since returning to office in January, aimed at major oil companies Lukoil and Rosneft, which spiked global oil prices and prompted Chinese and Indian buyers to seek alternatives.
U.S. officials have also encouraged European partners to consider using frozen Russian assets to purchase weapons for Kyiv. Internally, Washington is exploring how Russian assets held in the U.S. could support Ukraine’s defense. Trump has emphasized his role as a global peacemaker but admitted that ending the conflict has proven far more difficult than anticipated.
Trump’s diplomatic efforts have seen mixed results. A planned August meeting with Putin in Alaska yielded no progress, and a potential follow-up meeting was canceled after the U.S. president said it “didn’t feel right.” Meanwhile, talks with Ukrainian President Volodymyr Zelenskiy over territorial concessions in the Donbas region stalled.
Some proposed sanctions could go even further, including cutting Russian banks off from the U.S. dollar system, a measure suggested by Ukrainian officials. U.S. senators are also reviving a bipartisan sanctions bill, which Trump is reportedly open to endorsing, although action is not expected immediately.
Russian envoy Kirill Dmitriev expressed optimism about a diplomatic solution, while the Ukrainian Embassy in Washington praised recent sanctions but emphasized that dismantling Russia’s war machine remains the most effective way to end the conflict.
The coming weeks could see escalating U.S. and European pressure on Russia, as officials weigh both economic measures and diplomatic engagement to influence the course of the ongoing Ukraine war.