A sweeping US sanctions bill offers Ukraine new leverage on Russia, but enforcement looms

KYIV, Ukraine (AP) — Ukraine has long argued that Russia will only negotiate seriously if the cost of continuing the war becomes too high.

For Kyiv, punitive sanctions that impose real economic costs on Moscow are a key part of that strategy.

This week’s passage of a long-sought, sweeping package of U.S. sanctions aimed at cutting off some of the financial resources President Vladimir Putin relies on to fund the war gives Ukraine another potential source of leverage, but its impact may depend on whether and how aggressively the measures are implemented by the United States.

The House on Wednesday approved the sanctions package targeting Russian officials and key sectors of the economy. On Thursday, Ukrainian President Volodymyr Zelenskyy called the vote “symbolic,” adding that the House passed the bill on the same night Russia launched another large-scale attack across Ukraine, capabilities the full implementation of the deal would derail.

Kremlin spokesman Dmitry Peskov said Thursday that if the United States imposes additional sanctions on Russia, it would hinder the Washington-led effort to end the war in Ukraine.

“We are, of course, monitoring the passing of this document. This falls into the category of unfriendly actions. And, of course, the U.S. imposing some additional sanctions would definitely complicate the efforts to find a peace settlement in Ukraine,” Peskov told reporters during his daily conference call.

“For Ukraine, the immediate benefit is political, not economic. Congress signaling political solidarity with Ukraine via its legislative support sends a valuable message to the Kremlin,” said Tom Keatinge, director of the Centre for Finance and Security at RUSI.

Here’s why the sanctions package matters to Ukraine:

The bill could give Kyiv a powerful economic tool to pressure Russia

For Kyiv, the sanctions package offers another, powerful, way to increase economic pressure on Moscow.

Existing Western sanctions have imposed significant costs on Russia, but Kyiv has argued that they have not delivered the swift, severe economic impact needed to force a change in Moscow’s calculations.

“The U.S. House of Representatives’ passage of the Graham bill last night marks an important step toward further pressuring Russia, raising the cost of its continued aggression, and depriving the Russian war machine of resources,” said Ukrainian Foreign Minister Andrii Sybiha in comments to the press on Thursday. “It is crucial not to stop there. We very much hope that this decisive move will…signal the start of a new round of intensified pressure from other partners as well.”

The new legislation targets Russian officials, financial institutions and the network of tankers used to move Russian oil while evading sanctions. It also gives President Donald Trump the authority to impose tariffs of up to 100% on major buyers of Russian oil and gas, subject to specified exemptions.

The measure passed the Senate 86-11 in August and cleared the House 262-159 on Wednesday, sending it to Trump for his signature.

Kyiv has also sought to bring the costs of the war deeper into Russia through long-range strikes on oil refineries and energy infrastructure. The sanctions add to that military pressure by adding economic repercussions, especially if the sanctions target buyers and networks helping sustain Russian energy.

The bill’s passage is the result of intense diplomatic work

Securing that economic pressure has been a central focus of Zelenskyy’s lobbying and diplomatic efforts.

The bill is named after the late Sen. Lindsey Graham of South Carolina. Helping get it across the finish line was his final legislative effort: Graham spent more than a year negotiating the measure and secured an agreement with the White House shortly before his death.

Graham and Democratic Sen. Richard Blumenthal, along with other supporters of Ukraine, spent more than a year building support for the legislation and negotiating a version that could win backing from both the White House and Congress.

Zelenskyy also intensified his lobbying of U.S. lawmakers, including a closed-door meeting with senators following Graham’s funeral.

He used the meeting to make the case for continued U.S. support, describing Ukraine’s efforts to take the fight to Russia while pressing for sanctions aimed at cutting into the oil and gas revenues financing Moscow’s war effort.

He told lawmakers that the legislation was needed not only to weaken Russia’s ability to sustain the war, but also to bolster the morale of Ukrainian troops and civilians.

The bill’s effectiveness will depend on how aggressively it is implemented

For Ukraine, the central question now is how aggressively the Trump administration will use the new powers to pressure Moscow.

“Sanctions must be strong so that all efforts for peace, and in particular our joint diplomatic efforts with the United States, Europe, and other friends, are effective,” Zelenskyy said Thursday.

There are caveats. The bill gives the president discretion over how it is implemented, including authority over imposing tariffs and the ability to waive certain sanctions under specified conditions.

“Ultimately, this comes down to Trump’s commitment. He already has the tools to sanction Russia on his desk but has chosen to ignore supporting Ukraine in favor of a belief that his skill as a negotiator can end the war. Perhaps he has finally realized that economic pressure – his preferred response to all disputes – is the right tool in this case too,” said Keatinge.

That has raised concerns among some lawmakers that the administration could either wield the tariff powers too broadly, potentially affecting U.S. allies, or choose not to enforce the sanctions as aggressively as supporters envision.

Trump has so far favored diplomacy with Moscow, leaving open the question of how aggressively his administration will use the new sanctions powers to pressure Russia.