Reuters: US explores easing sanctions on Russia's energy sector in potential Ukraine peace deal

The U.S. government is exploring options to ease sanctions on Russia's energy sector as part of a broader plan to offer swift relief in the event of a peace agreement between Moscow and Kyiv, according to sources familiar with the matter.

The discussions come amid ongoing efforts to end the conflict in Ukraine, which has been raging for over three years, Caliber.Az reports, citing Reuters.

Earlier this week, the news outlet reported that the U.S. is drafting potential plans to lift sanctions on certain Russian entities and individuals. However, it was unclear whether this would include the country's vast oil and gas industry, which has been heavily targeted by Western sanctions in recent years.

Russia is one of the world's largest producers of oil and natural gas, and the U.S. has worked to deprive Moscow of the financial resources necessary to fund its military efforts in Ukraine. Measures have included sanctions aimed at crippling Russia's energy sector and a multilateral initiative to cap the price of Russian oil exports at $60 per barrel.

The White House has reportedly instructed the U.S. Treasury Department to explore ways to ease sanctions on Russia's energy sector in advance of anticipated talks between President Donald Trump and Russian President Vladimir Putin. The goal is to prepare for a potential rollback of sanctions should a peace agreement be reached, sources revealed. However, they emphasized that this initiative is contingent on Russia making significant concessions and should not be interpreted as an indication that sanctions will be lifted unconditionally.

Trump has expressed plans to meet with Putin in Saudi Arabia in the coming weeks to negotiate an agreement to end the war. Experts suggest that relaxing energy sanctions would likely be a key component of any peace deal. Trump also raised the possibility of imposing additional large-scale sanctions on Russia following a recent attack by Russian forces on Ukrainian energy and gas infrastructure. The strike marked the first major attack since the U.S. suspended aid and intelligence sharing with Ukraine.

The U.S. Treasury Department's inquiry into easing energy sanctions is part of a broader review of U.S. measures against Russia, which includes a potential rollback of sanctions on select Russian entities, including oligarchs. Since Russia's annexation of Crimea in 2014, the U.S. has imposed a range of sanctions, including travel bans, asset freezes, and restrictions targeting Russia's energy, financial, and defense sectors.

The Trump administration aims to be in a position to lift sanctions quickly, avoiding delays that were encountered in previous instances, such as the 2019 decision to lift sanctions on Russian aluminum producer Rusal. That delay contributed to disruptions in industries reliant on aluminum, leading to a 30% spike in prices.

Treasury officials are also examining the potential global impact of Russia's return to the energy market, including how it could affect global oil prices and shift trading patterns. While China and India have continued to purchase Russian oil, difficulties with payment systems and ship insurance have complicated deliveries.

As diplomatic efforts intensify, the U.S. is preparing for a critical phase in negotiations aimed at bringing an end to the Ukraine conflict. The potential easing of sanctions on Russia’s energy sector represents a significant element of these discussions, with the possibility of a major shift in global energy dynamics if a peace agreement is reached.

By Vugar Khalilov