In a swift reversal, President Donald Trump canceled a planned summit with Russian President Vladimir Putin in Budapest and instead imposed the first sanctions of his second administration on Russia, targeting its largest oil companies after determining that Putin was not serious about ending the war in Ukraine. This shift underscores the challenges in U.S.-Russia diplomacy as the conflict nears its fourth year, with Trump opting for economic pressure over high-level talks that he deemed futile.
The abrupt change followed a phone call last week in which Trump emerged optimistic about progress, announcing he would meet Putin in Budapest within two weeks to discuss a ceasefire and peace deal. However, over the next five days, U.S. officials, including Secretary of State Marco Rubio, realized that Russia’s stance had not meaningfully shifted, with Putin continuing strikes on Ukrainian civilians and refusing an immediate ceasefire. Trump cited these factors, along with a sense that discussions were going nowhere, as reasons for canceling the summit, stating it ‘didn’t feel right’ and would be a ‘waste of time.’
In place of the summit, Trump authorized sanctions on Rosneft and Lukoil, Russia’s two largest oil companies, in a move cheered by European allies like NATO Secretary General Mark Rutte. Treasury Secretary Scott Bessent, a long-time advocate for such measures, swiftly compiled the sanctions after Trump surprised advisers by agreeing to them. The announcement came during a meeting with Rutte, who made a last-minute trip to Washington, highlighting the international support for hardening the U.S. position against Russia.
The decision was influenced by Trump’s recent success in brokering a Gaza ceasefire, where he believed getting tough with Israeli Prime Minister Benjamin Netanyahu led to a breakthrough. Similarly, in Ukraine, Trump faced pressure from Republican allies, including Senator Lindsey Graham, to impose sanctions after months of threats that never materialized. His approach has been inconsistent, however; he has oscillated between threatening arms shipments to Ukraine and pressuring Ukrainian President Volodymyr Zelensky to cede territory, creating uncertainty among partners.
Trump’s zigzagging reflects the complexities of the war, where he has less leverage compared to the Gaza conflict. Putin may be exploiting Trump’s desire for a deal, as summits were proposed just as the U.S. considered tougher actions, such as providing Tomahawk missiles to Ukraine. Zelensky noted that Russia’s interest in diplomacy waned when military support seemed uncertain, underscoring the delicate balance in negotiations and the risk of Putin manipulating Trump’s deal-making instincts.
The new sanctions aim to pressure Russia’s economy, described as a ‘war ATM,’ but their effectiveness depends on enforcement and whether they can compel Putin to negotiate. White House officials hope this signals a more stable policy, though Trump has not ruled out future meetings if conditions improve. For now, the focus is on sustaining pressure, with European leaders urging continued support for Ukraine to prevent regional destabilization.
As the war grinds on, Trump’s reversal highlights the limits of his influence and the difficulty of achieving peace when neither side is willing to concede. The cancelled Budapest summit and imposed sanctions may mark a pivotal moment, but the path forward remains uncertain, testing the resilience of international alliances and Trump’s diplomatic strategies.