US threatens daunting tariffs to push Russia into peace talks
If Russia does not engage in serious negotiations to end the war in Ukraine, the United States is ready to announce new severe sanctions. Lindsey Graham, a key associate of Donald Trump, as quoted by Bloomberg, stated that he has support for this in the Senate.
Bloomberg reports that the United States has a draft bill ready, which would introduce a 500-percent tariff on imports from countries that buy Russian oil, petroleum products, natural gas, or uranium. Other sanctions it envisages include a ban on American citizens buying Russian government debt. This would be a significant blow to the Russian economy. Profits from the sale of raw materials—still substantial—drive Putin’s war machine.
These sanctions represent the Senate’s view that we see the primary bad guy being Russia, said Senator Lindsey Graham on Thursday.
The politician asserted that this "bill is a tool in President Trump’s toolbox" to compel Russia to take the plans to end the war in Ukraine seriously.
Graham assured that there would also be enough support in the House of Representatives to vote for the new sanctions. According to him, Putin will eventually have to choose between negotiating an end to the war against Ukraine with Trump or crushing the Russian economy.
How is the Russian economy faring? Last year—according to official data, which must be emphasised—it recorded growth of about 4 per cent of GDP, which is generated mainly by the development of the defence sector. Inflation is a significant problem. The authorities are trying to combat it with "drastic measures," which officially stands at about 9.5-9.9 per cent, but unofficially it could be as high as twice that, i.e., 18-19 per cent.
Two groundbreaking decisions for Ukraine
On Thursday, 1st May, Ukraine announced that it had signed a notable agreement with the USA on cooperation in natural resources and country rebuilding. Under it, an Investment Fund for Reconstruction will be established to invest in sectors such as mining, energy, and infrastructure. The funds are to be directed exclusively to Ukraine.
The American side will contribute not only financial resources to the fund but also—potentially—military resources, such as air defence systems. Ukraine commits to transferring 50 per cent of budget revenues from new concession fees on areas covered by the agreement.
On the same day, "Kyiv Post" reported that the USA intends to approve the sale of weapons to Ukraine worth at least $50 (£37,5) million. According to service's sources, the administration of Donald Trump informed Congress of its decision on Wednesday. This is the first such decision since the beginning of the second term of the US President.
