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Graham Breaks With Trump Over Russia Sanctions Law Her Brother Championed

Senator Darline Graham, appointed to fill the Senate seat of her late brother, Lindsey, gently disagreed with the president’s decision to exempt Russia from the sanctions legislation.

© Kenny Holston/The New York Times

Senator Darline Graham at a hearing in Washington last month.
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Trump Offers Putin Economic Relief in Hopes That Russia Will Return the Favor

The Trump administration is ignoring the will of Congress and waiving new Russia sanctions amid fears that high energy prices will cost Republicans in next month’s elections.

© Doug Mills/The New York Times

President Trump and President Vladimir Putin of Russia last year in Alaska.
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Congress gave Trump 30 days to hit Russia’s oil buyers with 100% tariffs. He waives them two days before deadline, citing US interests. Moscow calls it historic

The White House, seen from Lafayette Square. File photo, June 2024.

US President Donald Trump has suspended the tariffs and sanctions on the biggest buyers of Russian oil set by the Lindsey Graham Act, the law he signed himself in September. He says the move serves US national interests, according to an executive order published on the White House site.

The act required the president, within 30 days, to impose 100% tariffs on all goods from the five biggest buyers of Russian oil, to sanction a range of Russian entities and to put 500% tariffs on all Russian energy imports to the US. The deadline for those measures fell on 18 October.

Trump has used the president’s power under Section 115 of the Graham Act, which allows him to waive sanctions, restrictions, and duties by certifying to Congress in writing that doing so serves US national interests and submitting a report explaining why. The act does not, however, allow him to cancel sanctions that have already been announced.

Moscow calls it historic, Kyiv calls it a gift to Putin

The two capitals read the same order in opposite ways. Kirill Dmitriev, an envoy for Russian leader Vladimir Putin, called it “an important and truly historic moment” on X, claiming the sanctions had mainly harmed the US economy and world markets.

“Economic cooperation between Russia and the US serves the interests of both nations, contributes to global economic stability and lays the foundation for building trust and achieving lasting peace,” Dmitriev writes.

President Volodymyr Zelenskyy answered from under fire. Russia struck Ukraine’s energy system on 17 October, and at that very moment Washington chose “to completely ignore the Lindsey Graham law, which was supposed to impose real, effective pressure on Russia to end this war,” he says.

A law its own backers say is being gutted

The waiver lands amid a bipartisan revolt in Congress. Seven Republican and Democratic senators had already warned on 11 October that Trump’s move to allow Russian diesel imports had broken the law Congress passed after the full-scale invasion, urging the administration to reverse it so US money would not help finance Russia’s war.

Meanwhile, Zelenskyy argued the law can still work if Washington lets it.

“This law could, and still can, help a great deal. But the law has actually to work, and every vote for it matters,” he said, warning that the step only pushes Moscow to strike harder.

The world must not give up ground and must try to end the war, Zelenskyy added.

“To end it, and not give Putin every reason to continue it indefinitely,” he stressed, thanking everyone who “is truly fighting for peace and helping Ukraine," he stated.

The word from the Ukrainian opposition

The Ukrainian opposition also commented on Trump’s decision. Iryna Herashchenko, co-chair of the European Solidarity parliamentary faction, said that “the most cynical and stupid decisions are usually made by rulers on Saturday night,” when public attention is scattered, and people are preparing for the weekend.

“Rehabilitating Putin harms not only Ukraine but also the US itself, strengthens the axis of authoritarian regimes, and undermines international security,” she claimed.

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Trump Temporarily Waives Sanctions on Russia

(FILE) U.S. President Donald Trump. Photo: EFE.

U.S. President Donald Trump signed an executive order Friday temporarily suspending the application of a broad package of sanctions against Russia, arguing before Congress that the measure responds to the national interest.


The decision affects a law named after the late Republican senator Lindsey Graham of South Carolina, which seeks to toughen sanctions against the Russian economy and limit the flow of financial resources.

Trump had enacted that legislation on September 18 but has now temporarily exempted the application of several of its provisions, according to the order.

RELATED: White House Press Secretary Zacharia Resigns After 5 Days in the Job

The order exempts sanctions against persons and entities linked to the Russian government; financial and trade restrictions and tariffs planned for Russian products, and those from certain countries that buy Russian hydrocarbons, according to the order.

The decision does not eliminate the sanctions the United States had already imposed on Russia through previous executive orders.

The exemptions from the new law will remain in force until Trump or the Secretary of State, in consultation with the Secretary of the Treasury and the U.S. Trade Representative,

BIG: Trump waived sanctions targeting Russian fossil fuel sales just days before they were due to take effect.

The measures would have imposed tariffs of up to 100% on goods from major importers of Russian oil and gas.

Russian officials welcomed the waiver, while U.S. lawmakers… pic.twitter.com/j5DGn28Ml8

— Clash Report (@clashreport) October 17, 2026

The decision comes after Washington temporarily authorized commercial operations with Russian-origin diesel until April 7, 2027, including its import into the United States, despite the sanctions in force against Moscow.

Trump announced on October 9 that he had agreed with his Russian counterpart, Vladimir Putin, on the supply of diesel to international markets, with the aim of easing energy and fuel prices.

The Republican president said Russia would initially deliver more than 300,000 tons of fuel and would later supply additional quantities, conditioned in part on the state of its refineries, he said.

The agreement has drawn criticism from lawmakers of both parties, who question its possible effects on economic pressure against Moscow and its compatibility with U.S. legislation, according to the critics.

Detractors warn that revenue from the sale of Russian fuel could help finance the war against Ukraine, while the Administration defends the need to contain energy costs, according to the critics and the Administration.

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Trump Shelves Russia Sanctions Weeks After Signing Them Into Law

President Donald Trump has waived sweeping sanctions and tariffs targeting Russia’s energy revenues, invoking national interest provisions in legislation passed only last month. The decision follows his controversial diesel agreement with Vladimir Putin and threatens to deepen divisions with Congress and European allies over economic pressure on Moscow.

President Donald Trump has suspended the implementation of sweeping American sanctions against Russia, using presidential waiver powers to prevent penalties approved by Congress from taking effect just weeks after he signed them into law.

The executive order issued by the White House on Friday, 16 October, suspends tariffs of up to 500 per cent on Russian imports, alongside penalties targeting major purchasers of Russian oil and gas. It also waives numerous financial and commercial restrictions intended to reduce Moscow’s ability to finance its war against Ukraine.

The decision comes two days before the 18 October deadline for implementing key provisions of the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, which Trump signed on 18 September. The legislation was named after the late Republican senator Lindsey Graham, who had championed tougher economic measures against Russia.

Sanctions established but immediately suspended

The presidential order formally establishes the tariff increases required by the legislation while simultaneously suspending their application.

Under the law, Russian imports into the United States would face additional duties of 500 per cent. A separate provision would impose 100 per cent tariffs on goods imported from the five largest purchasers of Russian crude oil and natural gas if those countries knowingly made new purchases from 18 October, subject to specified conditions and exemptions.

Another provision targets countries identified as leading facilitators of Russian oil sanctions evasion, potentially exposing their exports to similar American penalties.

Trump invoked Section 115 of the legislation, which permits the president to waive sanctions and tariffs after certifying to Congress that doing so serves the national interests of the United States.

The order confirms that the certification and an accompanying explanatory report have been submitted to Congress. However, the publicly released document provides no detailed justification for suspending the measures.

The waivers will remain in effect until the president or designated senior officials decide that further action is appropriate. Existing sanctions imposed under earlier executive orders are explicitly preserved, meaning the decision does not remove all American restrictions against Russia.

Nevertheless, the order prevents the new legislation’s principal economic penalties from operating at a time when Congress had sought to intensify pressure on Moscow.

Diesel agreement shapes Washington’s decision

The suspension follows Trump’s agreement with Putin to facilitate renewed Russian diesel exports, announced on 9 October as part of an effort to reduce international fuel prices.

As EU Today previously reported, the agreement envisages an immediate release of more than 300,000 tonnes of Russian diesel, followed by additional shipments in November and subsequent months. Washington also authorised certain transactions involving Russian diesel until April 2027.

The arrangement has raised questions about the relationship between the administration’s energy policy and sanctions intended to constrain Russia’s war economy.

Diesel prices have become an increasingly important domestic political issue ahead of the American congressional elections on 3 November. The war involving Iran and disruptions to international energy supplies have contributed to exceptionally high fuel costs, creating additional pressure on the administration.

The White House hopes additional Russian supplies will relieve pressure on international markets. However, energy analysts have questioned whether the quantities involved will materially affect American prices, particularly before the elections.

The latest waiver also removes the immediate threat of punitive tariffs against major Russian energy customers, including China and India, which had objected to the proposed measures.

Congressional opposition and European concerns

The decision is likely to intensify opposition within Congress, where the sanctions legislation attracted substantial bipartisan support.

Earlier this week, 12 senators, including six Republicans, called on Trump to reverse his diesel agreement, arguing that allowing Russian fuel back onto international markets would provide Moscow with additional revenue for its military operations.

Democratic Senator Richard Blumenthal, who helped develop the sanctions legislation, criticised the diesel arrangement as contrary to Congress’s intention to strengthen economic pressure on Russia.

The decision also exposes a widening divergence between Washington and Brussels.

At the European Council meeting on Friday, European Commission President Ursula von der Leyen and European Council President António Costa reaffirmed that EU sanctions against Russia would remain in place until Moscow ended its war against Ukraine.

Costa declared that the present circumstances required increased pressure on Moscow rather than a relaxation of existing restrictions. The European Union is also preparing a 22nd sanctions package while considering additional financial support for Kyiv.

For Ukraine, the decision means that Russia will continue to benefit from energy exports and the international trade that helps finance its war. Instead of tightening restrictions on these revenues, Washington has suspended measures specifically intended to cut them.

The timing is particularly significant. While Trump is pressing Kyiv to halt attacks on Russian oil refineries and other energy facilities, Moscow continues its strikes against Ukrainian cities and civilian infrastructure. Zelenskyy has argued that Ukraine cannot be expected to stop targeting Russia’s energy sector while Russian attacks on Ukrainian infrastructure continue.

Although Trump can reinstate the sanctions, his decision removes the immediate threat of additional penalties against Russia and its principal energy customers. It also places Washington increasingly at odds with its European allies. Brussels remains committed to maintaining and expanding sanctions against Moscow, while the White House is now giving priority to reducing American fuel prices, even if that means easing economic pressure on Russia.

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Exclusive: Watchdog lists ships carrying Russian gas, blasts Trump sanctions waiver

"Republicans and Democrats passed this law in Lindsey Graham's name to squeeze Russia's war revenues. Trump has now hollowed it out before its main sanctions could bite," said Alexander Kirk, a sanctions campaigner at Urgewald.

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Putin Seizes More European Businesses as Moscow Expands Economic Retaliation Against EU

Russia has placed five foreign-owned businesses under compulsory administration, including Belgian manufacturer Ontex and French flooring group Tarkett. The latest seizures deepen the confrontation over sanctions, frozen Russian assets and the future of European investment in Russia.

Russian President Vladimir Putin has ordered the transfer of five Western-owned businesses into compulsory Russian management, extending a campaign of asset seizures targeting European companies that continued operating in Russia after the full-scale invasion of Ukraine.

The decree, signed on 15 October, affects businesses with combined annual revenues exceeding 53 billion roubles, approximately €530 million. They include French flooring manufacturer Tarkett, Belgian hygiene products group Ontex, German packaging producer Menshen, Kappa Rus and Eviosys Packaging Kuban, now linked to American group Sonoco.

Under Presidential Decree No. 738, operational control has been transferred to Centre Capital, a little-known Moscow company established in February 2026 with registered share capital of just 10,000 roubles.

The decision follows similar interventions against Nestlé, Auchan, FM Logistic and Metro in September. Together, the measures demonstrate how Moscow is using foreign-owned businesses as instruments of economic retaliation against countries supporting Ukraine.

Foreign businesses placed under Russian control

Centre Capital is headed by Marat Mirkhaydarov, a former senior official in Russia’s Zabaykalsky region who reportedly served with the Akhmat military formation during Russia’s war against Ukraine.

The scale of the companies placed under his management contrasts sharply with the financial standing of the administrator.

Tarkett’s Russian operations generated approximately 19.3 billion roubles in revenue during 2025, while Kappa Rus recorded 16.5 billion roubles and Ontex RU another 10.3 billion. Eviosys Packaging Kuban and Menshen Packaging CIS reported approximately 6.1 billion and 1.4 billion roubles respectively.

The decree does not formally transfer ownership of the companies to Centre Capital. It does, however, remove the foreign shareholders’ effective control over management, operations and commercial decisions.

For Belgian manufacturer Ontex, the consequences are immediate.

In an official statement issued on 16 October, the Aalst-based company confirmed that a government-appointed administrator had assumed operational control of its Russian subsidiary.

Ontex Russia employs approximately 350 people, operates a manufacturing facility in Noginsk and maintains a sales office in Moscow. The subsidiary accounts for around five per cent of the group’s total revenue and between seven and eight per cent of adjusted EBITDA.

The company said it was examining measures to protect its assets and maintain business continuity.

Tarkett likewise confirmed that it was losing effective control of its Russian operations.

A mechanism established in 2023

The legal framework for such interventions dates to April 2023, when Putin introduced Decree No. 302, allowing the Russian authorities to place assets associated with countries designated as unfriendly under temporary external management.

The appointed administrator can exercise extensive ownership-related powers, although the formal right to dispose of the assets remains excluded.

Crucially, the arrangement can be terminated only by presidential decision. There is no automatic deadline for returning operational control to the original owners.

Moscow maintains that the measures are reversible. Nevertheless, the loss of management authority raises questions about whether businesses could eventually be returned with their financial position, organisational structure and commercial value intact.

The latest decree extends the process already documented by EU Today following the September takeover of Nestlé and Auchan’s Russian operations.

The Kremlin’s approach also serves domestic economic objectives. Keeping factories, retail networks and distribution facilities operating under Russian management helps preserve employment, production capacity and established supply chains.

At the same time, appointing Russian administrators allows the authorities to exercise greater influence over businesses originally developed through foreign capital, technology and expertise.

European companies caught in sanctions confrontation

Kremlin spokesman Dmitry Peskov has explicitly linked the seizures to the nationality of the affected companies and the policies of their governments.

He accused European states of participating in the unlawful seizure of Russian property through sanctions and financial restrictions.

Moscow’s argument centres partly on approximately €210 billion in Russian sovereign assets immobilised in the European Union, most of them held through Belgium-based securities depository Euroclear.

The European Union has used extraordinary revenues generated by those assets to support Ukraine, while further proposals involving the underlying funds remain subject to legal and political debate.

Belgium has been particularly concerned about potential financial exposure and legal claims. As EU Today reported in September, a Belgian Council of State judgment raised additional questions about the administrative procedures governing certain frozen assets.

The dispute has also moved into the European courts, with the Bank of Russia challenging EU measures intended to protect Euroclear against the enforcement of Russian judgments.

Moscow’s treatment of European businesses adds another dimension to this confrontation. By retaining control over foreign-owned industrial and commercial assets, Russia possesses a means of exerting pressure on companies whose governments support sanctions and military assistance to Ukraine.

The implications are particularly serious for Western banks that still maintain substantial Russian operations.

Austria’s Raiffeisen Bank International and Italy’s UniCredit remain exposed to Russia through local subsidiaries. Any extension of compulsory administration to financial institutions could create additional difficulties involving deposits, capital and banking supervision.

The cost of remaining in Russia

The seizures also expose the financial risks faced by Western companies that delayed their withdrawal after February 2022.

Many initially sought to protect their investments, employees and commercial infrastructure. Others reduced operations but retained ownership, expecting that conditions might eventually permit an orderly sale or renewed business activity.

Russian restrictions have progressively complicated that calculation, requiring foreign investors from designated countries to accept substantial discounts on asset sales and obtain official approval for transactions.

Companies remaining in the country now face the additional possibility that the government will appoint administrators without their consent.

The consequences extend beyond the businesses immediately affected. Russia is establishing a precedent under which foreign investment can remain legally owned by its original shareholders while its economic benefits and operational management are placed beyond their control.

For European governments, the latest decree illustrates the increasing connection between commercial interests and geopolitical decisions.

The Kremlin has demonstrated that sanctions imposed over its invasion of Ukraine can be answered not only through diplomatic or financial measures, but also through direct intervention in European-owned businesses operating on Russian territory.

Any eventual negotiation over sanctions relief and the restoration of economic relations will consequently have to address the status of these assets, the rights of their original shareholders and the question of compensation.

Until then, Western companies remaining in Russia face an investment environment in which the ultimate authority over their businesses rests increasingly with the Kremlin rather than their shareholders.

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Zelenskyy Says Ukraine Offered to Halt Strikes on Russian Refineries in Exchange for US Missile Defences

Ukraine was prepared to suspend attacks on Russian oil refineries if Washington supplied anti-ballistic missile systems to protect its energy infrastructure, President Volodymyr Zelenskyy has revealed. The proposed compromise was not accepted, despite American pressure on Kyiv to halt its strikes.

Ukrainian President Volodymyr Zelenskyy has disclosed that Kyiv offered to suspend attacks on Russian oil refineries in exchange for temporary American anti-ballistic missile protection for Ukraine’s energy infrastructure. Washington did not provide the requested systems, leaving Ukraine exposed to continued Russian missile strikes while the United States sought to restrict Ukrainian operations against Russia’s oil industry.

Speaking at a press conference in Brussels on Friday, 16 October, Zelenskyy said the proposal had been presented to Washington as a compromise following President Donald Trump’s agreement with Vladimir Putin on Russian diesel supplies and restrictions on attacks against energy facilities.

The Ukrainian president confirmed that Kyiv had not been consulted before Washington reached its understanding with Moscow. He described the diesel agreement as a surprise and objected to arrangements determining Ukraine’s military actions without its participation. Any agreement concerning Ukrainian strikes on Russian territory, he argued, required consultation with the Ukrainian government.

Nevertheless, Zelenskyy said Ukraine had been willing to accommodate American demands, even under an arrangement that did not require Russia to suspend its own attacks. Instead of insisting on reciprocal restrictions, Kyiv proposed receiving sufficient anti-ballistic missile systems to protect its electricity network for the duration of the requested suspension.

The proposal reflected Ukraine’s immediate security requirements. Russia has repeatedly targeted power stations, substations and other critical infrastructure, while Ukrainian forces have attacked Russian refineries to disrupt fuel production and reduce revenues available to Moscow. Halting the Ukrainian campaign without additional defensive capabilities would have left Kyiv surrendering one means of economic pressure while remaining vulnerable to Russian bombardment.

Zelenskyy said he had asked Washington for a limited number of systems, rather than a substantial new military commitment. The proposed deployment would have lasted only as long as the United States required Ukraine to refrain from attacking Russian refineries. However, according to the president, no such assistance was provided.

US diesel agreement deepens dispute

The disagreement follows the diesel arrangement announced by Trump on 9 October, under which Russia agreed to resume substantial petroleum product exports to American and international markets. Washington also authorised certain transactions involving Russian diesel, easing restrictions previously intended to reduce Moscow’s energy revenues.

The agreement created a direct conflict between American energy policy and Ukraine’s strategy of targeting Russian refining capacity. Washington wants additional diesel supplies to ease pressure on fuel markets, while Kyiv regards attacks on oil infrastructure as a means of weakening Russia’s ability to sustain its invasion.

That disagreement intensified after Ukraine resumed attacks on Russian refineries, including a strike against a facility in the Ryazan region. Trump criticised the operations, accusing Kyiv of contributing to higher global oil prices. Zelenskyy, meanwhile, argued that increased Russian diesel revenues would provide Moscow with additional resources to finance its military campaign.

The Ukrainian president’s proposal also exposed the limitations of the temporary energy ceasefire promoted by Washington. Russia continued attacks against Ukrainian civilian infrastructure, including electricity facilities, despite the American initiative. Kyiv’s proposed compromise would have addressed the resulting imbalance by providing defensive protection rather than relying on Russian restraint.

Russian strikes underline Ukraine’s defensive requirements

The urgency of Ukraine’s request was illustrated by renewed Russian attacks during Zelenskyy’s visit to Brussels. According to the Ukrainian presidency, strikes on 15 October damaged energy infrastructure in several regions, leaving almost 15,000 people without electricity in Volyn and disrupting supplies in parts of Kyiv and the surrounding region.

Ukraine continues to face shortages of the interceptors required to defend against ballistic missiles. Zelenskyy has identified anti-ballistic capabilities as an immediate priority, particularly as Russia intensifies attacks ahead of winter. During talks with NATO Secretary General Mark Rutte, he stressed the need for additional missile interceptors and other air defence equipment.

The president also raised these requirements during Friday’s meeting with European Commission President Ursula von der Leyen and European Council President António Costa. Discussions covered air defence, protection of energy infrastructure and financial assistance needed to sustain Ukraine’s resistance to Russian aggression.

European leaders support Kyiv’s position

Zelenskyy said European leaders had supported Ukraine’s position in the dispute with Washington. His remarks came as the EU reaffirmed its intention to maintain economic pressure on Moscow despite the Trump administration’s decision to facilitate Russian diesel exports.

As EU Today reported earlier on Friday, von der Leyen and Costa rejected any relaxation of European sanctions while Russia continues its war. The Commission is preparing a further sanctions package, maintaining a policy intended to restrict Moscow’s ability to finance its military operations.

The contrasting American and European positions have become increasingly significant for Kyiv. Washington is seeking to stabilise fuel markets through arrangements with Moscow, while European governments remain committed to reducing Russian energy revenues and strengthening Ukraine’s military and economic resilience.

For Zelenskyy, the unresolved question is whether Ukraine can be expected to limit attacks on Russian oil infrastructure while receiving neither reciprocal guarantees from Moscow nor additional protection against Russian ballistic missiles. His account of the unsuccessful American negotiations indicates that Kyiv was prepared to compromise, but only if its immediate defensive needs were addressed.

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The resilience of the world economy is built on illusion – it’s time the West woke up

By Marco CARNELOS

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Contact us: info@strategic-culture.su

Record debt, a paralysed trade-dispute architecture and the normalisation of sovereign-asset seizure as a policy tool means fragility is baked into the global economic system

Since 2022,  a steady drumbeat of forecasts has warned that cascading military and political upheavals – war in Ukraine, conflict in the Middle East, an accelerating tariff war, the weaponisation of sanctions and the disruption of energy supplies – would eventually overwhelm the world economy’s capacity to absorb shocks.

The most destructive of those scenarios have not materialised, or at least not yet.

As the IMF’s managing director Kristalina Georgieva stated last year, while previewing the fund’s World Economic Outlook, the global economy “has generally withstood significant strains from various shocks”.

Although that resilience is real, on closer inspection, it is a more fragile and more contested achievement than it first appears.

The adaptive mechanisms behind this resilience are visible and measurable. Trade has rerouted rather than collapsed. Energy corridors have diversified. And reserve managers have spent the past three years quietly re-engineering the architecture of the international monetary system.

According to the World Gold Council’s 2026 Central Bank Gold Reserves survey – which drew responses from 76 institutions, its highest participation in nine years – 89 percent of central banks expect global gold holdings to keep rising over the next year, with a record share planning to add to their own reserves.

The result: gold has overtaken US Treasuries as the largest single component of global central bank reserves for the first time since the mid-1990s.

Mother of all ticking bombs

Analysts tracking the shift link it directly to a single event: reserve managers were unsettled by the seizure of the Central Bank of Russia’s reserves at the start of the Ukraine war by Washington and have since been actively reducing the dollar share of their portfolios.

This is a clear example that the economic system is not breaking under political pressure, it is adapting to it – flexibly, and crucially, without severing the interconnections that make global trade and finance function at all.

In other words, central banks accumulating gold are not exiting the system; they are just hedging within it.

But adaptability has a cost, and that cost is compounding.

Global debt – government, household, corporate and financial combined – surpassed $365 trillion in the first half of 2026, according to the Institute of International Finance’s Global Debt Monitor, the sixth consecutive quarterly record.

Emerging-market debt alone rose by $6.5 trillion in the same period, breaking past $110 trillion. Georgieva has been blunt about the trajectory: speaking at the IMF and World Bank annual meetings, she warned that global public debt is projected to reach 110 percent of the world’s GDP by 2029.

There is an evident reluctance to address what is not a crisis in any single country’s balance sheet, but a structural drift that every major economy appears aware of and none is prepared to correct unilaterally.

Debt of this scale narrows the fiscal space available to absorb the next shock, military or otherwise, which is precisely what makes today’s resilience difficult to extrapolate into tomorrow’s.

In this context, there is also the mother of all ticking bombs, a nuclear one: the $40 trillion US federal debt which US Secretary of Treasury Scott Bessent is desperately trying to reign in.

The third strand, the onslaught of punitive political measures targeting market principles, is best illustrated by the fate of Russia’s frozen central bank reserves. Roughly $300bn in Russian sovereign assets have been immobilised globally since 2022, with some €210bn ($235bn) held within the European Union.

Erosion of neutrality

Rather than remaining in legal limbo, these reserves have become the financial engine of a specific policy outcome: the EU’s proposed €140bn ($157bn) “reparations loan” to Ukraine, structured so that Ukraine would repay it only once Russia itself pays war damages – effectively converting a sanctions freeze into a grant.

Russia’s central bank has responded by suing the Brussels-based depository Euroclear, which holds the bulk of the assets, calling the manoeuvre illegal.

Whatever one’s view of the underlying conflict, the precedent is the point economists increasingly raise: the first large-scale use of frozen sovereign reserves as collateral for a geopolitical objective changes the calculus for every reserve-holding state watching from outside the western bloc.

It is one more data pointing to the reinforcing of the gold-accumulation trend described above – and a vivid example of how political tools aimed at a single adversary can erode the perceived neutrality of the system itself.

A parallel erosion is under way in trade governance. The WTO’s Appellate Body (the one supposed to settle trade dispute among countries) has been non-functional since December 2019, after the United States blocked the appointment of new judges and talks on reviving or replacing it remain stuck.

More than 30 appeals currently sit unresolved, and the workaround mechanism created to fill the gap – the Multi-Party Interim Appeal Arbitration Arrangement – has resolved only a single case. The institution designed to prevent trade disputes from becoming purely a function of relative power has been quietly sidelined for seven years.

It is then worth wondering – in such a situation – if the Global West and Global Rest see the same picture here.

The evidence suggests convergence on diagnosis but real divergence on meaning. Both recognise that debt is unsustainable and that institutions are strained. But where western policymakers tend to treat sanctions, frozen assets and trade paralysis as defensive responses to external aggression.

Voices from the Global Rest increasingly read the same tools as confirmation that the system was never as neutral as advertised.

India’s External Affairs Minister S Jaishankar captured this gap memorably in 2022, telling European interlocutors that Europe needed to “grow out of the mindset” that its problems are everyone’s problems while the reverse does not hold.

Selective status

This is something many Global Rest governments had been thinking but not saying aloud: that the postwar order’s claim to universality was always, in practice, more selective than it appeared.

The more honest and outspoken western leader to recognise such an unfair situation, to use an understatement, was Canadian Prime Minister Mark Carney earlier this year in Davos.

None of this means the system is about to fracture. The world economy has proven more elastic than feared, absorbing shocks that a decade ago might have triggered genuine crisis. But elasticity and durability are not the same thing.

The real test of this sort of “economy of resistance” is not whether it survives the next military-political storm – it plainly has, repeatedly.

It is whether record debt, a paralysed trade-dispute architecture, and the normalisation of sovereign-asset seizures as a policy tool are quietly converting what is in effect a short-term adaptability into long-term fragility, especially at a moment when the Global Rest and Global West can no longer agree on what the system is actually for.

Original article:  www.middleeasteye.net

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EU leaders rule out easing sanctions on Russia until war ends

Ursula von der Leyen and António Costa said the EU would maintain pressure on Moscow, after the United States eased restrictions linked to Russian diesel exports. The statements came as Volodymyr Zelenskyy joined EU leaders in Brussels for talks on Ukraine.

The EU will not lift sanctions on Russia while its war against Ukraine continues, European Commission President Ursula von der Leyen and European Council President António Costa said on Friday. Their statements came ahead of discussions at the European Council, where leaders were due to consider further support for Ukraine and the needs of its critical infrastructure before winter. The assurances followed Washington’s move to ease sanctions pressure in connection with a deal involving Russian diesel supplies.

Von der Leyen said the EU had supported the energy truce announced by US President Donald Trump, but accused Russia of failing to observe it. “We have seen that Russia did not respect it. Not a single minute. Instead, Russia escalated. We have to increase the pressure on Russia,” she said. She added that the Commission was working on a 22nd sanctions package and that the bloc would not lift any sanctions unless Russia stopped the war.

Costa also rejected any reduction in pressure. “We will not cancel any sanctions until Russia stops the war,” he said, calling for stronger support for Ukraine and increased pressure on Moscow to secure a genuine ceasefire. The statements set out the position of the Commission and European Council presidents; they were not, in themselves, a new sanctions decision by EU member states.

The US and EU sanctions regimes are separate. Washington’s decision concerns US restrictions associated with Russian diesel exports, while EU measures are adopted by the member states. Moscow said it had resumed diesel exports under the arrangement with the Trump administration, a development that has prompted concern in Kyiv and European capitals. The reported resumption of Russian shipments has brought renewed attention to the effect of energy revenue on the Kremlin’s ability to finance its war.

The Commission describes EU sanctions as a means of reducing Russia’s capacity to fund the war, imposing costs on its political leadership and weakening its economic base. The measures cover energy, trade and finance, alongside listings of individuals, companies and organisations. The EU’s sanctions framework against Russia has been expanded through successive packages since the full-scale invasion of Ukraine.

The leaders’ statements came as Ukraine prepared for another winter of Russian attacks on energy infrastructure. The European Council meeting agenda included continued support for Ukraine and the operational needs of its critical infrastructure. Von der Leyen said the EU would continue to support Ukraine through the winter. She also referred to progress on Ukraine’s accession process, saying the remaining negotiation clusters should be opened by the end of the year.

The EU has recently added measures targeting Russia’s military-industrial sector. In October, it adopted a package of listings aimed at companies and individuals connected to the country’s war effort, as covered in EU Today’s report on the latest sanctions. The diesel arrangement has also followed earlier tensions over the use of sanctions and energy policy, including the US deal with Moscow.

The EU’s stated position is that its sanctions will remain in place until Russia ends the war. The Commission is preparing further measures, while any new package will require agreement among member states. Friday’s statements did not change the existing regime, but made clear that the US decision on Russian diesel would not, by itself, prompt Brussels to ease EU restrictions.

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Zelensky thanks EU's 'real leaders' for their continued support as bloc confirms new sanctions package on the way

"We supported Trump's energy ceasefire but we see Russia did not respect it, and so we have to increase the pressure," von der Leyen told journalists, before announcing that the EU is working on a new 22nd package of sanctions against Russia.

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Trump’s Deal With Russia Inflames Ukraine War He Vowed to End

The Ukrainian president’s defiant decision to continue attacking Russian refineries underscores President Trump’s inability to end a war he had promised to resolve.

© Doug Mills/The New York Times

President Trump during a campaign stop in Alaska on Tuesday. He has not delivered on his promises to end the war in Ukraine, or to lower prices, and recent deals with Russia could complicate both issues.
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The EU loophole Russia is using to free its oligarchs from sanctions

Russia has exploited an EU sanctions loophole to unfreeze $3 billion worth of assets held by Belgium's Euroclear, according to a Flemish media report, and Austria's Raiffeisen Bank could be about to execute the same maneuver.

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