The United States is trying to enhance economic ties with Russia under the Trump administration as a part of ongoing peace talks with Ukraine. This move by US President Donald Trump is an attempt to entice Moscow. According to many experts, this idea would never succeed and would do more harm than good. Just a few weeks ago, Trump warned Russia about sanctions and stressed to them to accept the deal. Now he is trying to close ties with Russia and offers economic incentives instead. Trump praised his talks with Putin, promising “major economic development transactions” with Moscow.
According to US Secretary of State, Marco Rubio, this peace deal could unlock many incredible opportunities for the United States and Russia partnership. He is known for his tough foreign policy stance. Furthermore, Trump’s special envoy, Steve Witkoff said that if Russia accepted the peace deal then it would bring US businesses back to Russia. Mike Waltz, the US national security advisor, believes diplomacy with Moscow could quickly lead to “very productive and stabilizing relationships.”
However former US Ambassador to Ukraine Steven Pifer criticized the idea and said this approach was misguided. It is likened to steering a ship towards an iceberg. Along with Pifer, many others are worried that Trump’s strategy could hurt Ukraine’s interests and favor Russia. Despite these concerns, Trump is continuing his efforts and seeking closer ties with Russia.
What are the risks of easing sanctions on Russia?
It seems like easing economic sanctions on Russia is one of the Kremlin’s main goals and second only to weakening Ukraine. After removing sanctions Russia is trying to attack Ukraine again, enhancing security burdens on NATO and Europe. This is because Europe’s security umbrella, the United States is no longer reliable now. Removing sanctions now would reverse progress in reducing Russia’s energy sales and technology purchases. Due to many complexities such as high interest rates, labor issues, and inflation, Russia’s economy is also not a good investment. Despite knowing these facts, the US is offering economic incentives to Russia, which seems naive.
United States businesses are hesitant due to these risks, but officials like Rubio and Witkoff continue to propose economic concessions. This approach could ultimately harm both Ukraine and the West.
It is important to know that Russia can prove to be a tricky partner. Many Western companies left Russia after it invaded Ukraine in 2022. It includes automakers fast-food chains etc. Those leaving faced high exit fees, while those staying risked reprisals if they tried to return.
The US has put sanctions on Russia since 2014 that make it difficult for United States companies to do business there. However, removing these sanctions is not easy, requiring acceptance from Congress.
Companies are wary of places under sanctions, as seen with Iran. Russia’s economy is no longer the booming market it once was, and doing business there is fraught with challenges. Despite some interest in returning, many companies remain cautious due to these risks and the uncertain political landscape.
Trump’s strategy of removing sanctions contradicts his purpose for US energy dominance. The economy of Russia is heavily dependent on fossil fuel exports. Removing sanctions would allow Russia to sell a lot of cheap gas to Europe, undermining US natural gas exports. This move may prove good for Germany but disappoints the US Gulf Coast producers. Trump’s political maneuvers, like his interests in Greenland and Ukraine, are concerning. His actions raise concerns as they seem more like strategic games as compared to real-world diplomacy.
