U.S. Envoy in Moscow as White House Pushes for Ukraine Ceasefire
In a significant diplomatic move, the U.S. envoy arrived in Moscow on Wednesday to engage in crucial talks with Russian officials. The visit comes as the White House is racing against time to resolve the ongoing conflict between Russia and Ukraine before an impending deadline set by the U.S. president. The deadline, set for August 8, is the final opportunity for Russia to agree to a ceasefire or face potential sanctions. Despite Russian President's insistence on continuing operations in Ukraine, there are indications from the Kremlin that they might make concessions, such as halting airstrikes, to avoid further economic penalties.
The U.S. president's stance on the war has shifted significantly in recent weeks. Initially, pressure was focused on the Ukrainian president, but frustration with the Russian president has grown. The devastating images of Russian drone strikes on Ukrainian cities have left a deep impression on the U.S. president. Now, the U.S. president publicly asserts that the Russian president's worsening economic situation will eventually force him to end the four-year-long invasion. In an interview, the U.S. president stated, "If energy prices drop low enough, Putin will stop killing people."
The U.S. president has threatened to impose "secondary sanctions" on buyers of Russian energy to increase pressure on the Russian president. This move, however, is fraught with risks, as it requires a delicate balance to punish Russian oil buyers without disrupting global markets. This could potentially harm allies as well as enemies. The U.S. president himself is skeptical about the effectiveness of these sanctions, describing Russians as "sly characters" who are "very good at evading sanctions."
Meanwhile, the U.S. president is eager to avoid any domestic economic repercussions. U.S. consumers are still grappling with high oil prices, and domestic oil producers may face supply constraints. The U.S. president insists that he is not concerned about the potential impact of sanctions on the U.S. economy. Last week, he told reporters that the U.S. has ample oil reserves and will increase production further.
If the U.S. envoy fails to secure a nearly impossible peace agreement, the U.S. president will face intense scrutiny when deciding whether to follow through on his latest sanction threats. The U.S. president has previously proposed harsher penalties against Russia but backed down to maintain negotiations. If the Russian president escapes more severe sanctions again, it could reinforce the view among some investors that "Trump always backs down" from his tariff threats, potentially undermining his self-proclaimed image as a "peace maker" who deserves the Nobel Peace Prize.
If the U.S. president does impose sanctions on Russian oil buyers, it could jeopardize the fragile relationship with two of the world's largest economies. In recent days, the U.S. president has been in a verbal sparring match with India. On Tuesday morning, he announced plans to impose additional tariffs within the next 24 hours, on top of the existing 25% tariffs, due to India's continued purchase of Russian energy. If China is penalized for buying Russian energy, it could derail the U.S. president's efforts to extend the tariff truce with Beijing.
The Ukrainian president had a productive phone call with the U.S. president on Tuesday, updating him on the intensified Russian attacks. The White House confirmed the call but provided no further details. Local media reports suggest that a U.S. envoy is expected to arrive in Kyiv this weekend.
An unnamed diplomat expressed concerns that the U.S. envoy might be too lenient with the Russian president, given his willingness to listen to the Russian leader's views. The diplomat also fears that Russia's goal is to prolong the war in Ukraine without facing U.S. penalties. Earlier this year, the U.S. president hinted at abandoning efforts to end the war, but repeated calls from Kyiv and its European allies, culminating in the June NATO summit, persuaded him to re-engage. Allies agreed to significantly increase defense spending, and the U.S. president toned down his criticism of the alliance.
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