EU Holds the Cards on Trump's Options to Ease Russia Sanctions

US President Donald Trump could quickly lift some sanctions on Russia as a reward to Moscow if peace talks with Ukraine go well, but only Europe can take the bigger steps needed to significantly ease Russia's cash crunch.

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WASHINGTON -

Mr. Trump in recent days has renewed a threat to impose more sanctions and tariffs on Russia and buyers of its oil if there is no progress towards a peaceful settlement in the 3 1/2-year-long war in Ukraine.

But if talks go well, he could begin to lift some of the punitive measures.

Among Mr. Trump's options are releasing seized Russian assets, reopening US lending to Russian banks and corporations, and allowing US oil services companies to return to Russia's far-flung oil and gas fields.

Without Europe's cooperation, however, those measures would have limited effect and the most damaging sanctions — including massive restrictions on Russia's global oil trade, the lifeblood of its economy — would stay in place.

Oil and gas revenue accounts for about a quarter of Russia's total federal budget proceeds.

Revenues from the sector have fallen sharply, a painful outcome for Russia amid higher spending since launching its military campaign in Ukraine.

"The US unilaterally has far less to offer than the Europeans, who have little reason to give Russia a break until they get a satisfactory resolution on Ukraine," said Dr. Craig Kennedy, an associate at Harvard University's Davis Center for Russian and Eurasian Studies.