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Exclusive: Ukraine pitches tougher Russia sanctions plan to EU as US wavers

Ukraine’s Zelenskiy, UK PM Keir Starmer, France’s Macron, German Chancellor Friedrich Merz and Polish PM Donald Tusk speak with Trump via phone in Tirana, Albania on May 16, 2025. via Ukrainian Presidential Press Service

Ukraine to Urge EU to Lead on Tougher Sanctions as Trump Pulls Back

BRUSSELS, May 21 (Reuters) — Ukraine plans to present a sweeping proposal to the European Union next week urging the 27-member bloc to adopt significantly tougher sanctions on Russia, including asset seizures and penalties on foreign buyers of Russian oil. The move comes amid growing uncertainty over U.S. President Donald Trump’s commitment to sanctions enforcement.

Ukrainian White Paper Pushes for Bold EU Action

According to a previously unreported 40-page Ukrainian white paper, Kyiv will ask the EU to accelerate legislation allowing the seizure of assets from sanctioned Russian individuals and entities, with the proceeds redirected to Ukraine. The proposed framework would allow sanctioned individuals to pursue compensation from the Russian government.

The document also advocates for a shift in the EU’s sanctions architecture to enhance extraterritorial impact. Recommendations include:

  • Secondary sanctions targeting foreign companies—such as those in India and China—that purchase Russian oil or assist Moscow using EU-origin technology.
  • A majority-vote system for approving future sanctions, to bypass the current unanimity requirement that has often hampered swift EU action.
  • Expanded enforcement mechanisms and coordination at the EU level, compensating for perceived gaps in U.S. sanctions leadership.

Secondary sanctions, if enacted, would mark a significant policy departure for the EU, which has so far avoided directly penalizing third-country purchasers of Russian energy products.

Trump Retreats From Fresh Sanctions

U.S. President Donald Trump, after a phone conversation with Russian President Vladimir Putin on Monday, decided not to impose additional sanctions for the time being. A source familiar with follow-up discussions said Trump told Ukrainian and European leaders he preferred to “give time for talks to take place.”

This decision came despite prior lobbying by Ukraine and several European capitals, who had hoped for a united front in tightening economic pressure on Moscow. The U.S. shift has spurred concern among European policymakers about the durability of the Western sanctions coalition.

EU Leaders Seek to Maintain Pressure

In the absence of new U.S. action, the EU and the United Kingdom announced fresh sanctions on Russia on Tuesday, signaling their intent to maintain pressure. However, EU leaders are reportedly engaged in internal discussions on how to sustain sanctions momentum independently, should Washington disengage further.

The Ukrainian white paper underscores the urgency of this issue, noting:

“Today, in practice, Washington has ceased participation in nearly all intergovernmental platforms focused on sanctions and export control.”

It also states that U.S. monitoring and enforcement mechanisms have weakened, citing:

  • The dissolution of a U.S. federal taskforce prosecuting sanctions violators.
  • The reassignment of key sanctions experts.
  • Stalled progress on two major sanctions packages — one from the administration and another from Senator Lindsey Graham — that remain unsigned by Trump.

Kyiv: U.S. Drift Should Not Deter Europe

Ukrainian officials have avoided open criticism of Trump since a contentious White House meeting in February. However, behind the scenes, Kyiv is growing alarmed. One senior Ukrainian official told Reuters:

“American withdrawal from the sanctions regime (would) be a huge strike on the unity of the EU. Huge.”

The white paper urges the EU to assume a leadership role in maintaining and strengthening sanctions, warning that any wavering could weaken the broader international consensus.

Despite the dominance of the U.S. dollar giving Washington’s sanctions particular clout, analysts believe the EU still wields significant influence. Craig Kennedy of Harvard’s Davis Center said:

“Europe holds a lot more cards than you’d think… U.S. sanctions relief for Russia wouldn’t trigger a meaningful return of investors if Europe holds the line.”

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