Trump Waives Russia Sanctions as Zelenskyy Warns of Intensified War

What’s happening

President Trump has waived virtually all new Russia sanctions he had signed, putting on hold restrictions passed by Congress and championed by late Senator Lindsey Graham. The move comes as Russian strikes on Ukraine's power plants continue and winter approaches.

Market impact

Energy markets and defense contractors face uncertainty. Oil and gas prices could benefit from reduced sanctions pressure on Russian exports, while defense spending tied to Ukraine aid faces political headwinds. Geopolitical risk premiums may compress if markets interpret this as a signal toward negotiated settlement.

Broader implications

Zelenskyy has called the waiver a "reward" for Putin and warned it will intensify the war. This signals a fundamental shift in U.S. policy toward Ukraine and raises questions about the durability of Western sanctions regimes more broadly, with implications for future conflicts and deterrence.