Trump's Administration Split Over Potential Sanctions Relief for Russian Energy Assets
A high-stakes debate has emerged within the Trump's administration over the possibility of lifting sanctions on Russia’s Nord Stream 2 pipeline and other energy-related assets in Europe, potentially as part of a broader peace agreement to end the war in Ukraine.
The Gaze reports on this with reference to Politico.
Sources close to the matter told Politico that while no decision has been finalized, Special Envoy Steve Witkoff is pushing hard for the change, facing opposition from other senior officials.
Witkoff, reportedly close to Russian President Vladimir Putin, has instructed his team to compile a comprehensive list of energy sanctions currently imposed on Moscow. This move is seen as part of a broader strategy to reset U.S.-Russia relations, despite the ongoing war in Ukraine and widespread international condemnation of Russia’s actions.
However, the proposal has sparked fierce resistance from top administration figures, including Secretary of State Marco Rubio and Interior Secretary Doug Burgum, who also heads the White House Energy Dominance Council. Critics argue that lifting sanctions would significantly undermine American liquefied natural gas (LNG) exporters and potentially allow Moscow to regain its grip on Europe’s energy market — a scenario described by one source as an economic "bloodbath" for U.S. producers.
Despite denials from both Rubio and Witkoff — who issued a joint statement labeling the Politico report as “entirely fictitious” — multiple insiders confirm that such discussions have taken place behind closed doors. The statement slammed the publication as lacking journalistic integrity.
The Nord Stream 2 pipeline, though partially damaged in a 2022 explosion, remains partially functional. European resistance to reengaging with Russian gas remains strong, especially amid ongoing efforts to reduce reliance on Moscow for energy.
Meanwhile, U.S. investors, including Miami-based financier Stephen Lynch and former Stasi operative Matthias Warnig, are reportedly lobbying for the revival of the pipeline. Their efforts, however, have so far found little traction with the government and remain controversial within Washington.
As these discussions progress, the European Commission may propose measures to restrict member states from signing new contracts with Russia for oil and gas, further complicating the situation surrounding energy sanctions. The internal conflict within the Trump's administration underscores the challenges of aligning diplomatic goals with economic realities as the Russian-Ukrainian war continues to evolve.
As The Gaze reported recently, the EU unveils plans to cut Russian energy imports in May.