Sanctions against Russia: Europe pressures Trump, but receives counter-demands, - The Wall Street Journal
European governments have called on US President Donald Trump to tighten sanctions against Russia, but he has responded with counter-demands to stop purchases of Russian oil and impose duties on India and China.
According to Censor.NET, this was reported by The Wall Street Journal.
As reported, the EU has postponed a new package of sanctions against Russia to find a way to make it tougher.
European Commission President Ursula von der Leyen said that future restrictions would affect the Russian banking sector, the crypto market and the energy sector.
Informed sources say that Trump urged Europeans to use Russian assets frozen in Belgium, which have been stored there since the beginning of the full-scale war. The US administration has publicly supported this idea, but it has long remained unacceptable to the EU for fear of losing its status as a reliable financial centre.
The challenges from Washington have once again highlighted the EU's problems in developing a unified strategy against the Kremlin. Previous sanctions packages have not achieved the desired effect, the supply of US arms is stalled, and the energy dependence of some countries on Russia still persists.
Some diplomats believe that Trump has made deliberately unrealistic demands to avoid putting additional pressure on Russia.
It is extremely difficult for Europe to comply with Trump's calls to stop buying Russian oil completely and to impose tough sanctions on China and India.
European Commission President Ursula von der Leyen has confirmed the EU's intention to completely stop importing Russian oil and gas by 2027. At the same time, attempts to speed up this process may encounter resistance from Hungary and Slovakia, which remain dependent on Russian energy. On the other hand, Hungarian Prime Minister Viktor Orban's close relationship with Donald Trump may increase Budapest's willingness to compromise.
The European Union has also abandoned the idea of tariffs against India and China, preferring sanctions against companies and intermediaries that circumvent restrictions. The new package will include Chinese firms, while no additional measures against Indian companies are planned, as Brussels continues to negotiate a free trade agreement with New Delhi.
European leaders have long called on Trump to impose tougher sanctions on Russia and its supporters, while their own countries continue to buy Russian energy and allow some Russian banks to access the SWIFT system, a global financial transaction network based in Belgium. The EU also avoids so-called secondary sanctions against states that finance Moscow's military efforts.
The EU has imposed a number of financial, energy and economic restrictions and significantly reduced Russian gas imports. However, their implementation remains weak.
Trump himself has not yet followed through on his long-standing threats of new punitive measures against Russia, although he has sometimes escalated his rhetoric after particularly bloody attacks against Ukrainian civilians. He did, however, impose a 50 per cent tariff on Indian goods as punishment for purchasing huge amounts of Russian oil.
EU capitals continue to buy energy, both directly and indirectly, to the tune of about $27 billion in 2024. Last year, their imports of Russian liquefied natural gas rose sharply. They are not ready to provoke a trade war with China, which remains a critical export market.
While the EU is trying to agree on a sanctions response, it is also considering using some of the $300 billion in frozen assets of the Russian Central Bank. Until now, European governments have used only the interest on these deposits to finance Ukraine's defence. But with the rising cost of war, approaches are changing.
The bulk of these funds are European, American and British government bonds held in the Euroclear system, a European securities depository in Belgium. Brussels is now considering unblocking some of the money as early as next year.
Under one option, Europe would actually lend the funds to Ukraine, undertaking to compensate for any losses to Euroclear. If Russia fails to pay Ukraine reparations after the war ends, the EU will simply keep the sanctions in place to avoid having to choose between asset confiscation or paying Euroclear itself. Sanctions prohibit Euroclear from returning assets to Russia.
"This fund will become a de facto free and unlimited subscription to arms," said one of the officials involved in the negotiations. Russia has already warned that it will respond to the confiscation of assets, including by seizing the property of European companies still operating in Russia.
