U.S. Threatens Fresh Sanctions as Russia-Ukraine Talks Stall—Geopolitical Risk Spikes

Washington draws a red line in the sand—again. The Biden administration warns of new economic penalties if Moscow keeps playing hardball in peace negotiations. No numbers, no deadlines—just the usual financial warfare playbook.

Meanwhile, Wall Street yawns—sanctions are priced in faster than a meme stock pump-and-dump. After all, what’s another round of asset freezes between oligarchs and their Swiss bankers?

During testimony to the Senate Foreign Relations Committee, Rubio was asked about a bill led by Republican Senator Lindsey Graham. The proposal would slap wide-ranging new punishments on Moscow, aiming to choke the money it uses to fight the war.

The measure calls for a 500 percent tariff on goods coming from countries that continue to buy Russian oil and gas, along with other limits on finance and technology.

“If in fact it is clear that the Russians are not interested in a peace deal and they want to keep fighting a war, it may very well come to that point,” Rubio said. But he added that Trump thinks “right now if we start threatening sanctions, the Russians will stop talking. There’s value in us being able to talk to them and drive them to get to the table.”

Democratic committee member Senator Jeanne Shaheen said Putin offered no “meaningful negotiation that would end this war in Ukraine.” She added, “As President Trump has admitted, Vladimir Putin is taking him for a ride.”

Senator Chris Van Hollen went further, telling Rubio, “You’ve teamed up with President Trump to throw the Ukrainian people under the bus, and have been played like a fiddle by Vladimir Putin.”

Rubio affirmed that the Trump administration has leverage against Russia

Rubio insisted that the administration has the “same leverage today that we had under the previous administration.” He noted that “when Vladimir Putin woke up this morning, he had the same set of sanctions on him that he’s always had since the beginning of this conflict,” and he stressed that American weapons are still moving into Ukraine.

“Putin hasn’t got a single concession, he hasn’t got a single sanction lifted,” Rubio said.

Even so, the Florida Republican argued the war can end only through a negotiated deal. “What the president’s trying to do is end a war,” he told the panel, saying the United States must keep channels open so both sides will sit down.

His remarks did little to calm allies who had hoped for tougher language in Monday’s Trump-Putin talk. The call produced no pledge from Moscow to halt its attacks. Instead, Putin suggested that both parties draft a “memorandum” that would outline future treaty terms, a MOVE critics dismissed as a stalling tactic that allowed Russian troops to keep fighting while talks dragged on.

European and Ukrainian leaders also voiced unease after Trump floated the idea of stepping back as mediator and proposing that the Vatican take over the role instead. They warned that every day without a truce brings more civilian deaths and damage across Ukraine.

Cryptopolitan Academy: Tired of market swings? Learn how DeFi can help you build steady passive income. Register Now