U.S. readies harsh sanctions if Russia stalls on peace talks
If Russia does not engage in serious negotiations to end the war in Ukraine, the United States is prepared to announce new severe sanctions. "We have support for this in the Senate," stated Lindsey Graham, a key associate of Donald Trump, as quoted by Bloomberg.
Bloomberg reports that the United States has a draft bill ready, which would impose a 500 percent tariff on imports from countries that buy Russian oil, petroleum products, natural gas, or uranium. Other proposed sanctions include a ban on American citizens purchasing Russian government debt. This would pose a significant blow to the Russian economy. Profits from the sale of raw materials—still substantial—drive Putin's war machine.
These sanctions represent the Senate's view that we see the primary bad guy as being Russia, said Senator Lindsey Graham on Thursday.
The politician asserted that this "bill is a tool in Trump's hands" to compel Russia to take the plans to end the war in Ukraine seriously.
Graham assured that there would also be enough support in the House of Representatives to vote for the new sanctions. According to him, Putin will eventually have to choose between negotiating an end to the war against Ukraine with Trump or crippling the Russian economy.
How is the Russian economy faring? Last year, according to official data, which must be emphasized, it recorded a growth of about 4 percent of GDP, primarily generated by the development of the defense sector. Inflation is a significant problem. The authorities are trying to combat it with "drastic measures," which officially stand at about 9.5-9.9 percent, but unofficially could be as high as twice that, i.e., 18-19 percent.
Everyone expected that as a result of sanctions and trade restrictions, Russia would face severe disruptions. And of course, they are appearing, but a significant cushion for Russia is that revenues from the sale of fossil fuels, meaning oil, gas, and coal, remain at a relatively high level, explained Dr. Szymon Kardaś from the European Council on Foreign Relations a few months ago.
Two groundbreaking decisions for Ukraine
On Thursday, May 1st, Ukraine announced that it had signed a significant agreement with the USA on cooperation in natural resources and country rebuilding. Under it, an Investment Fund for Reconstruction will be established to invest in sectors such as mining, energy, and infrastructure. The funds are to be directed exclusively to Ukraine.
The American side will contribute not only financial resources to the fund but also, potentially, military resources, such as air defense systems. Ukraine commits to transferring 50 percent of budget revenues from new concession fees on areas covered by the agreement.
On the same day, the "Kyiv Post" reported that the USA intends to approve the sale of weapons to Ukraine worth at least $50 million. According to the service's sources, the Trump administration informed Congress of its decision on Wednesday. This is the first such decision since the beginning of the second term of the US President.
