A damning report from the Senate minority claims that, after three years of pressure, the number of new sanctions and export controls “dropped to zero” in the first six months of Trump in 2025.

Aug. 18, 2025

WASHINGTON, DC – A new and damning report from the minority staff of the US Senate Banking and Foreign Relations Committees alleges that the Trump administration has “abruptly halted” the economic pressure campaign against Russia, a move they say is undermining Ukraine’s leverage and emboldening the Kremlin.

Titled ‘Dropping the Baton’, the report, reviewed by Kyiv Post on Sunday, claims that after three years of consistent and rising pressure from the United States and its G7 partners, the new administration’s “pattern of inaction over the past six months is clear.

The document, prepared for Senators Elizabeth Warren (D-MA) and Jeanne Shaheen (D-NH), presents four main findings, building a case that the US is failing to use sanctions and export controls to help achieve a “just peace in Ukraine.”

The report states that the administration has allowed pressure to “dissipate” despite a growing number of Russian circumvention efforts and has stood by as evaders, particularly in the People’s Republic of China (PRC), have profited from their support for the Kremlin’s war machine.

Halt to sanctions and erosion of leverage

According to the report, the Trump administration “immediately stopped taking basic sanctions and export control actions” that had previously maintained and increased US pressure.

An analysis by the Committee staff found that from February 2022 to January 2025, there was a minimum of 16 “rollouts” of new sanctions and export controls in every six-month period.

By contrast, the report’s bar chart and cumulative graph starkly show that in the first six months of the new administration, this number dropped to zero.

This conspicuous drop-off, the report claims, is a direct result of the administration’s reluctance to use its “broad authorities to help end Russia’s war.”

The administration’s actions and public statements have also reportedly “further undermined Ukraine’s leverage by repeatedly signaling a lack of commitment to maintaining effective sanctions.”

This has reduced Russia’s incentive to negotiate, as the Kremlin perceives that the sanctions will “atrophy over time.”

The report highlights several striking examples of this pattern, which, taken together, suggest a deliberate shift away from the previous administration’s strategy.

For instance, Trump publicly advocated for Russia’s readmission into the G7, the very group that has been coordinating the international sanctions campaign. He argued that Russia’s suspension from the group in 2014 was a “mistake” that could have prevented the war, a move that critics say directly contradicted the unified front against Russian aggression.

Additionally, the administration reportedly insisted on negotiating weaker language within the G7. This new language suggested that additional sanctions should only be tied to “real, good-faith efforts” by Russia to end the war.

According to the report, this approach created a perceived loophole for Russia to exploit. In a significant departure from previous years, the US also refused to join its G7 partners in a major sanctions action on the third anniversary of the war. This was a stark contrast to the previous year, when the US had sanctioned more than 500 entities and individuals, and it sent a clear signal of a policy shift.

Finally, the administration also disbanded Task Force KleptoCapture, a Department of Justice unit that had successfully seized nearly $700 million in assets from Russian enablers and oligarchs.

The report notes that this decision effectively dismantled a key tool in the US economic pressure campaign, further reinforcing the perception of a weakened commitment to sanctions enforcement.

Oil revenue and growing sanctions circumvention

The report also highlights the administration’s failure to capitalize on the opportunity to cut Russian oil revenue, a major funding source for the Kremlin.

This inaction has persisted even as experts pointed out that there is now a greater array of ways to use sanctions without significant adverse impacts on global energy prices.

The EU and the UK, in contrast, have “forged ahead with more forward-leaning actions,” lowering their price caps on Russian oil without US participation.

The report shows that as US sanctions have slowed to a halt, Russian efforts to circumvent them have only grown.

The document provides several public examples of these ongoing efforts. For instance, a sanctioned Russian bank and an oligarch have reportedly launched a new cryptocurrency token to facilitate cross-border payments, with reports indicating it has moved billions of dollars in a matter of months. This demonstrates a clear attempt to bypass traditional financial systems that are subject to sanctions.

In another example of financial circumvention, major Russian banks are reportedly establishing a new “China Track” payments system.

This network would use intermediaries in countries considered friendly to Russia, creating a parallel system to avoid the SWIFT international payment network and other Western-controlled financial channels. This move aims to insulate Russian commerce from further pressure.

Beyond financial systems, the report also details circumvention in the trade of restricted goods. More than 130 companies in mainland China and Hong Kong are actively advertising the immediate sale of restricted computer chips to Russia, providing a direct supply chain for goods crucial to Russia’s military machine.

The report notes that the administration itself has stated that roughly 80 percent of Russia’s dual-use imports – goods with both civilian and military applications – are coming from China. This highlights a critical and growing vulnerability in the sanctions regime.

Finally, the report cites a Reuters story that an Indian company shipped a military-grade explosive compound to Russia, despite explicit US warnings, underscoring the challenge of enforcing sanctions across diverse international actors.

Staffing and a call to “STOP!’

The report points to a “concerning strain” and “reduced staffing levels” at key government agencies, including the Departments of the Treasury, State, Commerce, and Justice.

It states that “impulsive personnel decisions have pushed experts out of government service” and mismanaged a hiring freeze meant to exempt national security personnel.

The report concludes that while the administration can still change course, its approach remains passive. It cites a moment in late April when, after Russia launched deadly strikes against Kyiv, Trump chose to respond with a social media post imploring Putin to “STOP!” rather than bringing America’s economic tools to bear.

Russia launched another round of strikes the next night, and the report notes that “Russia now often batters Ukraine with more drones in a single night than it did during some entire months in 2024.”

Rubio denies…

Kyiv Post reached out to the White House for comment, but it had not responded before time of publication.

During an interview on NBC’s Meet the Press on Sunday, Secretary of State Marco Rubio stated that “the Russians are already facing very severe consequences. There’s not a single sanction that’s been lifted. Not one.”  

Rubio said, “I mean, they are facing all the same sanctions that have been in place today. All the American support continues for Ukraine.”

https://www.kyivpost.com/post/58378