President Donald J. Trump is threatening to place new sanctions on Russia, with a focus on the country’s banking industry, unless it agrees a ceasefire and long-term peace agreement with Ukraine. In a post on Truth Social on Friday, the U.S. President warned Russian and Ukrainian leaders Vladimir Putin and Volodymyr Zelensky that they needed to begin talks as soon as possible.
“Based on the fact that Russia is absolutely ‘pounding’ Ukraine on the battlefield right now, I am strongly considering large scale Banking Sanctions, Sanctions, and Tariffs on Russia until a Cease Fire and FINAL SETTLEMENT AGREEMENT ON PEACE IS REACHED,” President Trump wrote in his post, adding: “To Russia and Ukraine, get to the table right now, before it is too late. Thank you!!!”
The United States has already imposed sanctions on most of the Russian economy. However, a series of exceptions implemented by former President Joe Biden and Russia’s use of third parties to access global markets have dramatically weakened the economic restrictions. President Trump could choose to enact sanctions similar to those he has implemented against the Islamic Republic of Iran, which impact companies and countries doing business with the Middle East pariah state, not just the Iranians themselves.
A move towards Iranian-style sanctions could devastate the Russian economy, which is already experiencing some turbulence as it becomes more dependent on the likes of China and North Korea as commerce partners. Some analysts believe that Russia is realizing that access to Western markets is necessary for its economic survival, which could explain the timing of President Trump’s sanction threat.