U.S. may adjust Russia sanctions based on Ukraine talks outcome

On Thursday, U.S. Treasury Secretary Scott Bessent indicated that the United States could modify its sanctions on Russia, potentially offering relief if the country shows a willingness to negotiate an end to its conflict with Ukraine. In an interview with Bloomberg Television, Bessent stated that the U.S. might either increase or reduce sanctions based on the progress of talks aimed at resolving the Ukraine war.

Bessent also mentioned that he plans to hold discussions with his Chinese counterpart on Friday, emphasizing the need for China to shift its economic focus towards increased consumer spending. The Treasury Secretary aims to persuade China to rebalance its economy, a stance that has been consistent among U.S. officials over the years.

President Donald Trump has expressed the possibility of meeting with Russian President Vladimir Putin this month to discuss ending the war.

While Bessent did not provide specific details on the timing of a potential Trump-Putin meeting, he confirmed his absence from the upcoming G20 finance ministers and central bank governors meeting in South Africa due to domestic considerations.

During his Senate confirmation hearing, Bessent had voiced support for intensifying U.S. sanctions on Russian energy sectors, particularly oil majors, if directed by President Trump. He also criticized Ukrainian President Volodymyr Zelenskiy for not signing a proposed $500 billion deal to provide critical minerals to the U.S. and for escalating tensions with Trump.

Zelenskiy has rejected the U.S. demands for Ukraine to repay Washington in mineral wealth for wartime aid, arguing that the U.S. has not provided the alleged sum nor specific security guarantees in the agreement.

Regarding U.S. debt issuance, Bessent stated that any shift towards increasing the share of longer-term Treasuries is not imminent, citing obstacles such as the Federal Reserve’s quantitative tightening program. He dismissed the idea of revaluing U.S. gold holdings as a means to reduce borrowing needs or to create a sovereign wealth fund.

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