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Trump's Sanctions Strategy: Easing or Intensifying Pressure on Moscow

Trump Team Weighs Sanctions Strategy Amid Rising Tensions and Biden's Latest Measures Against Moscow

Trump's Sanctions Strategy: Easing or Intensifying Pressure on Moscow
Trump's Sanctions Strategy: Easing or Intensifying Pressure on Moscow

Some Advisors for the US President-elect Donald Trump worked out a plan which included sanctions on pressing Russia and Ukraine to hold peaceful talk as reported by Bloomberg. The approaches may also unwind some of these constraints put on Moscow. Two major Russian oil companies, Gazprom Neft and Surgutneftegaz, along with their affiliates, and 183 vessels laden with carrying Russian crude were hit last week by President Joe Biden's latest significant wave of sanctions. These measures have already driven world oil prices higher, with Brent crude futures rising almost $5 per barrel since the news broke.

According to Bloomberg, which cited people briefed on Trump's plans, his administration is weighing two paths for future U.S. sanctions. One approach under consideration would be to provide partial sanctions relief to Russian oil firms if there is any indication that there might be serious efforts toward resolution of the Ukraine conflict. The other approach is to turn the screws even tighter in order to put pressure on Moscow and provide Washington with a better negotiating position. Any sanctions relief could involve lifting the price cap on Russian oil above its current $60 per barrel, while tougher measures could include reinforcing secondary sanctions or targeting vessels allegedly carrying Russian oil.

Sources said that these plans are still in the preliminary stages and would depend on Trump's decisions.

Moscow has strongly criticized Biden's new sanctions as "illegal." Kremlin Spokesman Dmitry Peskov warned that the actions will destabilize the global energy markets. Russian Foreign Ministry Spokeswoman Maria Zakharova further added that Biden's presidency might be remembered by the "chaos" he leaves behind.

By contrast, Trump has signaled that a meeting with Russian President Vladimir Putin is in the works, and Moscow says it is willing to talk to the new U.S. administration.