Trump's 'Phase Two': New Sanctions Set to Rock Russia's Economy

Trump's 'Phase Two': New Sanctions Set to Rock Russia's Economy

In a unified attempt to pressure Russia into peace talks, the US and EU are preparing to discuss new sanctions, potentially leading to a collapse in Russia's economy.

Story: US, EU to Discuss New Sanctions on Russia; Trump Ready for 'Phase Two'

Story Summary

US President Donald Trump and the European Union are set to discuss new sanctions against Russia, with Trump indicating readiness for a 'second phase' of sanctions. These measures, including secondary tariffs on Russian oil importers, are aimed at weakening Russia's economy and forcing President Putin into negotiations over the ongoing conflict in Ukraine.

Full Story

US, EU to Discuss New Sanctions on Russia, Trump Ready for 'Phase Two'

In a significant development, the United States and the European Union are set to discuss new sanctions against Russia on September 8. US President Donald Trump has stated he is ready to move into the 'second phase' of sanctioning Russia, following the largest aerial attack by Moscow in the ongoing conflict. These discussions will involve officials from the White House, the US Department of State, and the office of the US Trade Representative, according to the Associated Press.

Background of the Sanctions

This move comes as the US seeks to increase pressure on Russia over its actions in the Ukraine conflict. US Treasury Secretary Scott Bessent told NBC News that the US is prepared to work with European allies on new sanctions targeting countries that purchase Russian oil, with the goal of weakening Moscow’s economy and increasing diplomatic pressure.

Trump's 'Phase Two' of Sanctions

President Trump confirmed that he is prepared to step up sanctions against Russia in order to pressure it into a peaceful agreement. The President did not provide further details on what this 'second phase' of sanctions will entail. However, he has previously threatened Moscow with further sanctions but withheld them as he pursued peace talks, as reported by The Hindu.

Potential Impact on Russia's Economy

The proposed sanctions and secondary tariffs are expected to have a profound impact on the Russian economy. According to Scott Bessent, these measures could potentially lead to the collapse of Russia's economy, thereby bringing President Vladimir Putin to the negotiating table. We are prepared to increase pressure on Russia, Bessent was quoted saying by the Kyiv Independent.

Reactions and Implications

The recent developments have triggered strong reactions from the United States and the EU, particularly after the attack on the Ukrainian government quarter. There have been calls from the US for a united front against Moscow, as reported by La Repubblica.

In contrast, Iran's Deputy Foreign Minister Abbas Araghchi noted that indifference or exaggeration towards the sanctions is a mistake. He added that the country is facing “multi-layered, complex, and extensive sanctions” that have left clear marks on the economy, foreign trade, and people’s lives, as reported by IRNA English.

Conclusion

As the US and EU prepare to discuss the new sanctions, it remains to be seen how this 'second phase' of sanctions will impact the ongoing conflict and Russia's response. The potential economic collapse of Russia due to these sanctions could indeed bring Putin to the negotiating table, as suggested by Bessent. However, it is clear that the international community is watching closely, with varied reactions to the sanctions and their potential implications.