US Treasury’s Bessent Says Russia Could Win Sanctions Relief If Cooperative In Peace Talks

Via Zero Hedge by Tyler Durden

Update (15:00 ET): The Trump administration has signaled that Russia could win sanctions relief if Ukraine war talks are successful.

“Russia could win some relief from U.S. sanctions based on its willingness to negotiate an end to its war in Ukraine,” US Treasury Secretary Scott Bessent conveyed Thursday in a Bloomberg interview. Per the breaking report:

Asked whether the U.S. was prepared to increase sanctions on Russia or reduce them depending on how talks to end the Ukraine war go, Bessent said: “That’d be a very good characterization.”

The US Treasury chief then emphasized, “The president is committed to ending this conflict very quickly.”

Trump’s stance on Ukraine has been met with growing beltway resistance, including from notable Republicans, amid a growing war of words with Zelensky, labeled a ‘dictator’ who doesn’t want to hold elections in a Wednesday Truth Social post by Trump.

The Ukrainian administration understands itself to be increasingly isolated by Washington, now near the eve of the war reaching the exact three-year mark, and there are reports that Zelensky is being told by his advisors to not respond to Trump’s provocative words. Trump is telling Zelensky he needs to hold elections.

Any sanctions relief on Moscow would mark a huge shift in the conflict, and Europe would ultimately have no choice but to conform, despite the continuing hawkish statements issued from Brussels. Statements from Rubio also reflected this Trump stance days ago…

Russian markets have responded this week, with the Ruble hitting a six-month high:

Russia’s ruble surged to its strongest level against the U.S. dollar in more than six months on Thursday, buoyed by renewed U.S.-Russia ties and hopes in Moscow for sanctions relief. The ruble has gained about 14% since U.S. President Donald Trump returned to the White House in January, reversing losses from late 2024. 

On Thursday, Russia’s Central Bank set the official exchange rate at 88.5 rubles against the U.S. dollar, its highest level since August. While Russia does not have a fixed exchange rate, the Central Bank’s figure reflects market trends. The rebound follows a steep drop in the ruble last year when the outgoing Biden administration imposed its toughest sanctions on Russia’’ oil sector since the start of the war”.

Trump has held out the threat of more sanctions, but this new statement from Bessent signals where the US administration’s priorities are headed.

* * *

Retired US Lt. Gen. Keith Kellogg, Trump’s special envoy to Ukraine and Russia, is in Kiev where on Thursday he had an (apparently) brief meeting with Ukrainian President Volodymyr Zelensky.

A scheduled post-meeting news conference has been unexpectedly canceled, though no reason was immediately forthcoming, according to a Ukrainian official, presidential spokesman Serhii Nikiforov. The US side made no comment upon the presser’s cancelation.

The Associated Press observes, “When the meeting began, photographers and video journalists were allowed into a room where the two men shook hands before sitting across from each other at a table at the presidential office in Kyiv.”

What’s the latest in the growing feud that let up to this?

President Trump on Wednesday night continued bashing Ukraine’s Zelensky, this time describing that his officials treated Treasury Secretary Scott Bessent “rudely” during his visit to Kiev last week.

Trump further said that Zelensky chose to sleep instead of meeting with the high-ranking American official to discuss the White House proposed mineral rights deal. “Zelensky was sleeping and unavailable to meet him,” Trump told reporters aboard Air Force One.

Trump’s comments:

The Treasury Secretary had “traveled many hours on the train, which is a dangerous trip,” Trump added, characterizing the whole visit as futile given the Ukrainians “told him ‘no'” on the deal for America to acquire 50% of the country’s rare earth minerals.

Trump’s anti-Zelensky rhetoric, which included him calling him a “dictator” yesterday, has grown to the point that many pundits see that the Ukrainian president’s exit is nigh. Trump is pressuring Kiev for new elections, which would require parliament to change the constitution.

Vice President J.D. Vance also warned Wednesday that Zelensky will only bring harm on himself should be continue ‘badmouthing’ President Trump. This was in reference to Zelensky asserting that Trump is living in a Russian “disinformation space”. 

Vance’s warnings were conveyed in an interview published in the Daily Mail:

“The idea that Zelensky is going to change the president’s mind by badmouthing him in public media, everyone who knows the president will tell you that is an atrocious way to deal with this administration,” Vance said. 

“We obviously love the Ukrainian people,” but “we obviously think that this war needs to come to a rapid close,” he added. 

And Vance followed with a reminder: “That is the policy of the president of the United States. It is not based on Russian disinformation.”

Elon Musk has defended the Trump admin’s fierce critique of Zelensky. For example, Musk had tweeted out the following list by prominent pro-Trump account @DC_Draino: 

Want to know why Trump called Zelensky a Dictator? Here are the FACTS:

• He’s in year 6 of his 5 year term
• Declared martial law Feb 2022 and has banned elections since then
• Banned 11 political parties
• Passed law in 2022 to censor journalists and combined all news into one gov’t station
• Journalists investigating his corruption get conscripted and thrown on the front lines to die

The list ended with the observation that “Even Saddam Hussein held elections!” We should add to this list the ongoing persecution of the Ukrainian Orthodox Church by the Zelensky government, merely because it maintains spiritual communion with the Moscow Patriarchate.

At this point, many pundits believe it’s only a matter of time before there’s a change in Ukraine’s government. European leaders are of course rallying around Zelensky, but the pressure and power of Washington is a different matter, and in essence Trump is warning that if the Zelensky doesn’t achieve peace, there will be drastic changes in Kiev.

Read in its entirety at zerohedge.com.

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