A Sanctions Reprieve
Vakhtang Partsvania on how U.S. sanctions relief gives Russia breathing room, weakens the credibility of sanctions threats to third countries, and exposes the limits of the EU’s ability to apply pressure on its own
In mid-October 2026, conflicting trends emerged in the United States and European Union's sanctions policy towards Russia. The EU approved an expansion of sanctions, adding nearly 1,600 Russian companies and executives from the military-industrial complex. Meanwhile, the United States took the opposite route, authorizing transactions involving Russian diesel fuel and extending sanctions exceptions for Lukoil assets.
These policy differences highlight a growing divergence between the EU and the U.S. regarding the extent of economic pain inflicted on Russia through sanctions. This divergence is concerning as sanctions against Russia appeared to yield tangible results by the end of 2025. Factors such as market conditions, oil discounts, and declining revenues put pressure on the Kremlin.
The U.S.-Israeli war against Iran further complicated the situation, pushing oil prices higher and narrowing the discounts on Russian oil. However, the U.S. unexpectedly granted Russia a reprieve as sanctions were eased, despite the potential financial difficulties resulting from accumulated restrictions. While sanctions haven't ceased to work, the ease of restrictions by the U.S. raises questions about their sustainability and the impact on third countries and businesses.
The EU can potentially offset the consequences of American concessions, but the divergence between the two strategies may weaken sanctions pressure on Russia.
Written by urgent.news from Riddle Russia's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
