The United States is preparing a new round of sanctions against Russia to increase pressure if President Vladimir Putin rejects a proposed peace agreement with Ukraine. People familiar with the matter say the measures are being discussed as negotiations continue between the United States, Ukraine, and European partners. The sanctions could be announced as early as this week, though a final decision rests with US President Donald Trump.
The plans were discussed during a recent meeting between US Treasury Secretary Scott Bessent and European ambassadors. After the meeting, Bessent stated publicly that the United States remains focused on ending the war in Ukraine and prioritizing peace. A request for comment sent to the US Treasury Department outside regular business hours did not receive an immediate response.
The discussions come as diplomatic efforts show some progress but remain weighed down by unresolved issues. While talks continue, the possibility of stronger sanctions is being prepared as added leverage to influence Russia’s response to proposed terms.
Energy Sector and Shadow Fleet Targeted
The new sanctions under consideration are expected to focus on Russia’s energy sector, particularly its oil exports. One major target is Russia’s so-called “shadow fleet,” a group of tankers used to transport Russian oil while bypassing existing restrictions. These vessels have helped keep oil shipments moving despite earlier sanctions.
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In addition to targeting ships, the United States is also considering penalties against traders and intermediaries who facilitate Russian oil sales. These actors play a key role in maintaining Russia’s export flows and revenue.
Since Russia launched its full-scale invasion of Ukraine in 2022, multiple waves of sanctions have been imposed by the United States and its allies. These measures have included restrictions on banks, industries, oil producers, and shipping networks. The US and other Group of Seven countries have already sanctioned four major Russian oil producers and hundreds of tankers involved in transporting oil.
Although these sanctions have not changed Putin’s overall strategy, they have had a clear economic impact. Crude prices linked to Russian exports have dropped to their lowest levels since the invasion began. This decline has reduced export income and placed additional strain on Russia’s economy.
At the same time, the global oil market is moving toward surplus. Brent crude prices have fallen sharply this year, reaching their lowest levels since early 2021. This oversupply has limited the risk that additional sanctions would cause major increases in global oil prices.
Peace Talks Progress and Sticking Points
The discussions on sanctions are taking place alongside ongoing peace negotiations. US and Ukrainian officials have reported some advances in talks this week. US envoy Steve Witkoff held meetings in Berlin with Ukrainian President Volodymyr Zelenskiy and European leaders to discuss proposals related to a possible agreement.
One area of progress involves security guarantees for Ukraine after the war. Zelenskiy has said that Ukraine has an agreement with the United States to make these guarantees legally binding through a vote in Congress. Ukraine has also asked for written commitments outlining how allies would respond if Russia were to attack again.
However, major disagreements remain. Russia continues to demand that Ukraine cede parts of the Donbas region, including Donetsk and Luhansk. These territories have been contested since 2014, and Ukraine and many of its allies oppose giving up land or withdrawing troops from areas considered vital to national defense.
Other unresolved issues include the use of frozen Russian central bank assets and the future management of the Zaporizhzhia nuclear power plant. European leaders are expected to decide soon whether frozen Russian assets can be used to provide military and economic aid to Ukraine. Russian officials have strongly criticized this possibility.
Russian Deputy Foreign Minister Sergei Ryabkov has said he believes the conflict is nearing an end but confirmed that Russia’s territorial demands remain unchanged. He has also ruled out the deployment of NATO troops in Ukraine as part of any peace agreement.
Meanwhile, diplomatic engagement continues. Witkoff and Jared Kushner previously held extended talks with Putin at the Kremlin in early December, as negotiations remain ongoing behind the scenes.