Key Points and Summary – Following Russia’s massive weekend drone attack, the U.S. and European Union are coordinating on a potential new, tougher round of sanctions.
-President Trump threatened a “second phase,” while the Treasury Secretary called for a joint effort to “collapse” the Russian economy.
-An EU delegation is in Washington this week to discuss its 19th sanctions package, which could target Russian banks, energy companies, and payment systems.
-Crucially, the EU may also use its “anti-circumvention tool” against third countries like Kazakhstan that help Moscow evade restrictions, signaling a significant tightening of economic pressure.
Time to Collapse the Russian Economy?
Approached on his way to the U.S. Open on Sunday, President Donald Trump said he’s ready to move to a “second phase” of sanctions against Russia.
Per Reuters, Trump has made that threat before, but backed down as he has pursued peace talks, aimed at ending the war after more than three years. Trump did place secondary tariffs on India, a major importer of Russian energy.
“That cost hundreds of billions of dollars to Russia,” Trump said last week of the India tariffs. “You call that no action? And I haven’t done phase two yet or phase three.”
Russia has responded to the threat, once again making clear that it will not back down due to sanctions.
“Sanctions are the agenda supported by the Kyiv regime and European countries. They are doing everything to bring Washington into their orbit and impose these sanctions,” Kremlin spokesperson Dmitry Peskov said in a Telegram interview this week.
“It would be preferable for us to achieve our goals and ensure our security by political and diplomatic methods, but at the time when this is impossible due to the lack of reciprocity, we continue the [war],” Peskov added, in the interview with Russian journalist Alexander Yunashev.
The EU Angle
Especially following Russia’s attack on Ukraine over the weekend, which was the largest drone barrage since the start of the war, the European Union is talking about further sanctions on Russia.
According to Bloomberg News, the sanctions under consideration would focus on Russian banks and energy companies, as well as payment and credit card systems and possibly even crypto exchanges.
The sanctions would be the 19th round from the EU, since the start of the war in early 2022. The 18th round in July was also geared towards Russia’s financial and energy infrastructure, while also listing more vessels that are considered part of Russia’s “shadow fleet.”
“The bloc is hoping to coordinate some of its latest measures with the US, said the people, who spoke on the condition of anonymity to discuss private deliberations,” Bloomberg News reported. “A delegation of EU officials will be traveling to Washington this week to meet US counterparts and discuss the potential for joint action.”
The EU is also considering such measures as eliminating existing carve-outs for oil companies like Rosneft. It may also use its “anti-circumvention tool” against Kazakhstan, which would ban that country from providing “ a specific set of machines that, according to the bloc’s trade data, are still being diverted to Russia in high volumes.”
European Commission President Ursula von der Leyen had said last month that the next package of sanctions would be ready for consideration in early September. Per The Guardian, the EC president spoke to Vice President JD Vance on Friday, and that “the only topic during the call was Ukraine.”
Joint Sanctions?
The U.S. Treasury Secretary brought up the possibility of more sanctions during a Meet the Press appearance on Sunday.
“We are prepared to increase pressure on Russia, but we need our partners in Europe to follow,” Bessent said in the interview, in which he also declared that the U.S. and EU must team up to “collapse” the Russian economy and force Putin back to the table.
And per The Moscow Times, EU Sanctions Envoy David O’Sullivan is headed to Washington on Monday. The talks, per the report, are “aimed at tightening coordination with the United States on measures against Russia.”
“We are working with the United States and other like-minded partners to increase our pressure through further direct and secondary sanctions,” European Council President António Costa said at a press conference this week, after he met with Zelenskyy.
About the Author: Stephen Silver
Stephen Silver is an award-winning journalist, essayist, and film critic, and contributor to the Philadelphia Inquirer, the Jewish Telegraphic Agency, Broad Street Review, and Splice Today. The co-founder of the Philadelphia Film Critics Circle, Stephen lives in suburban Philadelphia with his wife and two sons. For over a decade, Stephen has authored thousands of articles that focus on politics, national security, technology, and the economy. Follow him on X (formerly Twitter) at @StephenSilver, and subscribe to his Substack newsletter.
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