The Group of Seven (G7) nations including the U.S., Japan, Canada, Britain, France, Germany, and Italy recently agreed to coordinate tougher sanctions on Russia to restrict its ability to finance the war in Ukraine. The plan focuses on countries that buy Russian oil, indirectly helping Moscow evade sanctions. Key buyers like India, China, and Turkey have expanded their imports of Russian crude since the 2022 invasion.
Despite this collective stance, U.S. President Donald Trump has so far avoided approving new sanctions on Moscow, keeping allies uncertain about Washington’s next steps. The U.S. did, however, impose an additional 25% tariff on Indian imports, raising total duties on Indian goods to 50%, in an attempt to deter New Delhi’s oil purchases from Russia.
Why It Matters
Trump’s hesitation to align fully with the G7 sanctions strategy introduces strategic ambiguity that could weaken the group’s coordinated economic pressure on the Kremlin. According to EU sanctions envoy David O’Sullivan, this uncertainty is significant: “There are signs he’s losing patience with Putin, but whether that leads to more U.S. sanctions is an open question.”
The EU, Britain, and Canada have already lowered the price cap on Russian crude oil from $60 to $47.60 per barrel, a move the U.S. declined to join a decision O’Sullivan labeled “regrettable.” The divergence raises concerns about the credibility and effectiveness of Western unity on sanctions policy.
European policymakers have expressed frustration at Washington’s reluctance to move in tandem with its G7 allies. Analysts suggest Trump’s administration prefers tariff-based pressure over coordinated multilateral sanctions a method European capitals view as less effective.
Meanwhile, O’Sullivan emphasized that sanctions are having a tangible effect: “All indicators in the Russian economy are flashing red.” Yet, he warned that Russia continues to find ways to circumvent restrictions, prompting ongoing efforts to tighten enforcement.
The EU is also encouraging the U.S. to pressure Hungary and Slovakia, both still reliant on Russian oil and gas, to phase out their purchases. Within Europe, discussions for the 19th EU sanctions package include measures to cut Russian LNG imports.
Tougher Stance on China
With U.S. commitment uncertain, Brussels is pivoting toward a parallel containment strategy targeting China, which Western officials see as Moscow’s main enabler in circumventing sanctions. Beijing has supplied dual-use goods like drones and microelectronics, which can be repurposed for military use.
Recent EU sanctions have included Chinese banks and industrial entities, as well as India’s second-largest refinery. The upcoming 19th sanctions package may expand listings to include independent Chinese refiners and Central Asian banks.
O’Sullivan noted: “We would infinitely prefer a constructive dialogue with China, but so far, they seem unwilling.”
What’s Next
As Trump’s administration weighs its next move, the future of G7 coordination on Russia remains uncertain. The EU appears prepared to lead on sanctions enforcement, tightening restrictions on Russia’s economic allies and refining its approach to close loopholes.
If Washington delays further action, Brussels and other G7 members may intensify unilateral measures to sustain pressure on Moscow while also attempting to engage Beijing more directly to curb Russia’s access to battlefield goods.
With information from Reuters.
