Vladimir Putin

WASHINGTON — At first glance, President Trump’s decision to relax U.S. sanctions on Russia despite its continuing invasion of Ukraine was a dramatic break from principles that guided American foreign policy for most of a century.

Since the end of World War II, U.S.-Russian relations have oscillated between hostility and friendship, but one element was consistent: When Russia tried to take over one if its neighbors, the United States pushed back.

This time, though, the United States appeared to favor the aggressor, not the victim.

“The Trump administration has abandoned any pretense of being an honest broker,” Richard N. Haass, a former senior State Department official under then-President George W. Bush, wrote last week. “It has gone all in on Russia’s side.”

The break from long-standing tradition was real, but it should not have been entirely surprising.

Trump has long expressed admiration for Russia’s autocratic leader, Vladimir Putin — part of a syndrome one of his former aides, Fiona Hill, has called “autocrat envy.”

“He wants to rule like them,” she said, referring to the president’s bromances with Putin, China’s Xi Jinping and other strongmen.

Meanwhile, Trump often expresses disdain for democratically elected leaders of smaller countries, and he reserves a special loathing for the president of Ukraine, Volodymyr Zelensky.

He has repeatedly said Zelensky was foolish to resist Russia’s 2022 invasion because, in his view, the larger country is almost certain to win the war.

“Russia is a massive country,” he said this month. “Even if it loses a million soldiers, it still has a million more. Ukraine doesn’t have that kind of manpower.”

Moreover, Trump has long believed U.S. companies could reap an economic bonanza from Russia’s resource-rich economy. As a real estate magnate, he spent 30 years seeking deals in Moscow; in 2008, his son Donald Jr. said Russians had provided the Trump Organization “a lot of our assets.”

In the short run, the president hopes to boost Republican prospects in next week’s midterm elections by buying diesel fuel from Russia — a move aimed at lowering prices at the cost of bolstering Putin’s war economy. (It hasn’t worked; the price of diesel has risen slightly since Trump’s decision.)

But he has a longer-term goals as well. He has long believed better relations between the United States and Russia would be good for both countries, no matter who’s in power in Moscow. And he has long yearned openly for a Nobel Peace Prize — and one way might be to arrange a durable ceasefire in Ukraine.

All those factors have led Trump to overturn two major elements of traditional U.S. foreign policy.

Instead of supporting Ukraine, the victim of a foreign military invasion, he’s been pressing the Zelensky to accept Putin’s demands for territory.

“President Trump still wants a personal relationship with Putin, and he wants to change the nature of the bilateral U.S.-Russian relationship. Ukraine is in the way. So what President Trump is trying to do is get Ukraine out of the way. … President Trump wants Zelensky to capitulate,” Hill said.

“Zelensky has to want to settle this war, and if he doesn’t, I think it’s going to be a very bad thing,” Trump said last week.

As he issued that advice, Ukraine’s army was experiencing interruptions with three forms of U.S. military help: Starlink, the communications system it uses to guide its anti-drone missiles; U.S.-provided early radar warnings of Russian missile attacks; and supplies of Patriot anti-missile weapons. U.S. officials claimed the three incidents were not deliberate — but to Ukrainians, they felt like a warning.

Meanwhile, instead of putting pressure on Putin through the traditional means of economic sanctions, Trump said he was trying to entice the Russian leader to negotiate by giving him preemptive rewards.

“I am in the process of negotiating Peace in the war between Russia and Ukraine, and don’t want to do anything that will drive, foolishly, Russia away from the bargaining table,” he explained on Truth Social. “Great progress is being made.”

But signs of that progress were hard to find. In St. Petersburg last week, Trump’s personal envoy, Steve Witkoff, presented Putin with a ceasefire proposal that the Americans negotiated with Ukraine and European countries. A top Putin aide dismissed the document, saying it “contained little of real value.”

Instead, the Russian president offered to increase Russian fertilizer exports to U.S. farmers. And he said he hoped Trump would join him at a summit meeting in China with Xi.

Ukraine has not been invited to that meeting, which prompted Haass to resurrect an old diplomatic aphorism: “If you’re not at the table, you’re on the menu.”

Haass and other veterans of U.S. negotiations with Russia fear that Putin is merely stalling for time and pocketing Trump’s concessions while he tries to grind Ukraine down with missile attacks on Kyiv and other cities.

“If Trump and Witkoff were serious, they would give Putin 15 days to say yes to their ceasefire proposal — and if he doesn’t, they would impose new and tougher sanctions,” said Steven Pifer, a former U.S. ambassador to Ukraine. “There are still a lot of things they can do that would put Russia in a corner.”

But that has not been Trump’s inclination so far.

The irony, Hill said, is that even if Trump gets his way, that may not produce the victory he appears to expect.

“Putin and Trump are not the only actors in this,” she said. “Ukraine is not anybody’s to give. Its not Putin’s to have, and it’s not Zelensky’s. … This whole war is about Ukrainians wanting the right to determine their own future. It’s not Putin’s right or anyone else’s. It’s not Donald Trump’s to give away.”

Amid escalating tensions with Ukrainian leader Volodymyr Zelenskyy, United States President Donald Trump has increased pressure on the Eastern European country to make a deal that would end the war with Russia.

Speaking at the White House on Tuesday, Trump doubled down on his efforts to blame the Ukrainian president for holding up peace efforts that would bring the years-long conflict to a close.

“Zelenskyy has to want to settle this war, and if he doesn’t, I think it’s going to be a very bad thing,” Trump said as he talked about Russia having an “unlimited” supply of people to send in the fight.

Moments later, the US president referenced a contentious Oval Office meeting he held with Zelenskyy in February 2025, shortly after returning to power.

Zelenskyy, Trump said, could have made a “better deal” then. “He’s going to have to want to make a deal, because I don’t think his people are going to stand for it any longer,” Trump told reporters.

On Tuesday, the Ukrainian president met US special envoy Steve Witkoff and European leaders in Oslo, Norway, to discuss ending Russia’s war.

In a post on social media after the meeting concluded, Zelenskyy said, without providing specifics, that his country has “some clear ideas on how to get to peace”.

“We are united with our European partners in this effort, and we want the Americans to take these ideas to the Russians,” Zelenskyy wrote. “One of the important ideas is to move to a potential trilateral meeting of the leaders to address the issues that only the leaders can do.”

The Ukrainian leader added that Witkoff would head to Russia on Wednesday, where peace discussions are expected to continue.

“Let’s see what Putin has to say,” Zelenskyy said.

When asked whether Russian President Vladimir Putin should meet Zelenskyy, Trump said there was “tremendous” hatred between the two leaders.

“It’s hard for them to be in the same room,” Trump said. “I don’t care how it’s done.”

Starlink controversy

Trump’s remarks come as the White House continues to squeeze Ukraine in order to force the country to cut a deal with Russia.

Last week, Ukrainian officials reported slowdowns with Starshield, the military-grade version of the Starlink satellite system, run by the aerospace company SpaceX.

Ukraine relies on the technology for communications and intelligence to prevent Russian attacks.

It is unclear who ordered restrictions that limit Ukraine’s access to Starshield. SpaceX CEO and Trump ally Elon Musk pointed a finger at the White House.

“Starshield systems are owned and controlled by the US government. Any limits on speed or usage are decided by the US military and ultimately POTUS,” he wrote on October 14.

The news agency Reuters also reported that the order came from inside the White House, citing two US officials and a Western official.

But a report in The Wall Street Journal on Tuesday claimed US officials had blamed Musk himself for the slowdown, saying the SpaceX CEO ordered it last week. Trump and US Defence Secretary Pete Hegseth have both denied that the government directed the restrictions, with Hegseth pushing responsibility towards SpaceX.

Building ties with Putin

Trump, meanwhile, has sought to ease the historically tense relations between Russia and the US.

In August 2025, Trump invited Putin to Alaska, the Russian leader’s first visit to US soil in a decade.

More recently, Trump has expressed openness this month to meeting with Putin and Chinese President Xi Jinping, as part of a trilateral discussion on denuclearisation.

Trump also announced this month that he struck a deal to obtain diesel from Russia, marking a stunning reversal of years of US pressure on Moscow’s economy.

The US president also waived new economic restrictions that would have been imposed under the Lindsey Graham Sanctioning Russia and Iran Act, a bipartisan law he signed one month earlier, in honour of a late senator.

It would have imposed sanctions on Russian officials, banks and tankers, as well as tariffs on countries that purchase Russian oil.

US Secretary of State Marco Rubio defended the decision on Tuesday, saying the law allowed the waiver through a provision embedded in the legislation.

“The president chose to use a national security waiver to not immediately implement those [sanctions and restrictions], because he recognises that these things have to be looked at in their totality,” Rubio said in an interview with India’s News18.

Rubio argued that Trump was engaged in a “balancing act” in deciding the extent of US-imposed economic restrictions and how they could impact the rest of the world.

“When you do that pressure, sometimes it spills over and has a negative impact on other countries,” Rubio said.

Trump calls for Zelenskyy to be replaced as negotiator, while Ukraine’s president says arms shipments delayed.

United States President Donald Trump says someone other than Ukrainian President Volodymyr Zelenskyy should negotiate on Kyiv’s behalf in talks to  end Russia’s war.

“Zelenskyy is a man that should have had settled this war a long time ago. If he would’ve listened to me, he would have made a much better deal a long time ago,” Trump told reporters outside the White House on Monday. “Maybe it’s time for Zelenskyy to get somebody else to negotiate.”

The US president has been verbally swiping at his Ukrainian counterpart for several days as a rift between the leaders deepens.

On Sunday, Trump claimed on Truth Social that Zelenskyy does not want to end the war. Earlier this month, he called for him to be replaced as president, and labelled him a “warmonger” over Ukraine’s attacks on Russian oil refineries.

Trump has also defended sanctions waivers for Russia, saying in the same Truth Social post that he wants to keep Moscow at the negotiating table.

Zelenskyy said the decision “will hurt Ukraine” and strengthen Russian President Vladimir Putin’s war effort.

Trump also announced plans on October 9 for Russia to supply more than 300,000 metric tonnes of diesel to US and global markets to tackle fuel prices that have soared since the US and Israel launched a war on Iran in late February.

The decision has angered not only Kyiv, but also European partners and US officials, who say it rewards Moscow while it continues its four-and-a-half-year war on Ukraine.

Zelenskyy told US senators at a meeting on Monday that decisions taken by the Trump administration “are hard to explain between friends”.

He said arms shipments had been delayed and intelligence sharing restricted.

“We also know that … the Pentagon is delaying the delivery of missiles that our partners have already paid for through the PURL (Prioritised Ukraine Requirements List) programme,” he said.

To his knowledge, he added, one missile package was waiting for the signature of US Defense Secretary Pete Hegseth.

He also said several European countries were ready to transfer Patriot interceptor missiles from their own stockpiles but were awaiting US approval.

In remarks posted in a video on Telegram, Zelenskyy said that on three occasions in the past week, Ukraine had not received the advance warning of Russian attacks generally provided by its partners.

Last week, Zelenskyy suggested a disruption of Starlink services in Ukraine was “deliberate”. US Secretary of State Marco Rubio rejected the claim.

The sparring comes as Trump’s special envoy Steve Witkoff is ⁠set to travel to Norway this week for the next round of negotiations on ending the war in Ukraine, the Reuters news agency reported, citing three people familiar with the matter.

Two of the sources said they expected Zelenskyy to attend the meetings.

The Oslo discussions are expected to include Zelenskyy, Norwegian Prime Minister Jonas Gahr Store, representatives of the E4 – made up of the United Kingdom, France, Germany, and Poland – the European Union, and NATO.

US president accuses Ukrainian leader of not wanting to end the war, as Zelenskyy speaks with Washington envoys.

United States President Donald Trump has defended sanction waivers for Russia, saying he wants to keep Moscow at the bargaining table and accusing his counterpart in Kyiv of not wanting to end the war in Ukraine.

Trump made the comments on Truth Social on Sunday in response to criticism of his decision to block numerous sanctions on Russia just days before they were due to take effect.

“My decision on Russia is a very simple one. I am in the process of negotiating Peace in the war between Russia and Ukraine, and don’t want to do anything that will drive, foolishly, Russia away from the bargaining table,” he said.

The move has triggered a significant diplomatic fallout between Trump and Ukrainian President Volodymyr Zelenskyy over the past week.

Zelenskyy said that waiving sanctions on Russia, which launched a full-scale invasion of its neighbour in 2022, “will hurt Ukraine”, telling NBC’s Meet the Press on Sunday that it would strengthen Russian President Vladimir Putin’s war effort.

“We can’t compare me and Putin. He’s [an] aggressor. He occupied us. He killed adults and children, his soldiers. He’s a terrorist, and that’s why I hope that President Trump will be very clear with this position.”

Trump reiterated his claim that Zelenskyy does not want the war on his country to end, saying on Truth Social that Kyiv was launching attacks on diesel refineries in Russia despite knowing it was “seriously hurting the world diesel markets”.

“Zelenskyy doesn’t care, and frankly, with all of the money that Europe is famously giving him… he doesn’t want to end this war, and probably never did,” Trump wrote.

Trump announced plans on October 9 for Russia to supply more than 300,000 metric tonnes of diesel to US and global markets to tackle fuel prices that have soared since the US and Israel launched war on Iran in late February. The move led Tehran to effectively close the Strait of Hormuz, through which one-fifth of global energy exports transited before the war.

Trump’s embrace of Russian energy has angered not only Kyiv, but also European partners and many US officials, who say the move rewards Moscow while it continues its four-and-a-half-year war against Ukraine.

US-Ukraine talks continue

The Ukrainian president said on X on Sunday that he has spoken with US presidential envoys Steve Witkoff and Jared Kushner as part of “virtually non-stop communication” between the two countries’ teams aimed at the “next steps in diplomacy”.

“We are doing everything on our part to make this happen, and to ensure that America’s position is strong and helps bring peace closer. Peace that everyone, except Russia, has been waiting for over the past four and a half years,” Zelenskyy wrote.

Zelenskyy spoke with Witkoff and Kushner as Russia and Ukraine continued to strike each other’s energy sites, with Moscow leaving thousands without power, and Kyiv carrying out the largest drone attack on Russia, in St Petersburg, since the war began.

Oct. 17, 2026 8:31 AM PT

WASHINGTON — President Trump’s abrupt decision to waive sanctions on Russia days before they were to take effect drew outrage Saturday from members of Congress, which had overwhelmingly passed the legislation in a bipartisan display of American support for Ukraine in the war with Russia.

Lawmakers from both parties blasted the executive order late Friday, the latest in a series of steps that the Republican president has taken drawing the United States closer to Russia’s Vladimir Putin. Trump recently announced a diesel deal with Putin to import Russian energy in a long-shot effort to curb high gas prices in the U.S. that are roiling the midterm elections on Nov. 3.

“Beyond irresponsible,” said Sen. Thom Tillis (R-N.C.), on social media, hours after Ukrainian President Volodymyr Zelensky expressed hope that the sanctions that were supposed to take effect Sunday targeting Russian’s economy could be revived.

“What part of enforcing a law passed 86-11 by the Senate does the President and his advisors not understand?” Tillis said. “It’s unconscionable that this administration is capitulating to a Russian dictator who illegally invaded Ukraine.”

Tillis said that if Trump wants to actually bring down energy prices, he should resolve the Iran war, which is largely blamed for the spike at the pump, and “not by doing a solid for Vladimir Putin.”

Republican Sen. John Cornyn of Texas said, “Lindsey would be appalled,” referring to the late Sen. Lindsey Graham (R-S.C.), who worked endlessly on the bill before he died this summer. The bill is known as the Lindsey Graham Russian Sanctions Act.

Sen. Elizabeth Warren (D-Mass.) said Trump is “thumbing his nose” at Congress and “enabling Vladimir Putin to continue his war of aggression.” She urged her colleagues to take action to reverse course.

Trump’s actions come as Ukraine is bracing for a stark winter confronting Russia’s ongoing attacks on its energy infrastructure to heat homes and keep the lights on. Zelensky, who has endured a rocky relationship with Trump but stayed close to the U.S. lawmakers, urged supporters to speak out on behalf of the sanctions.

The next steps are highly uncertain with the House and Senate on recess until after election day. Trump said he was waiving the sanctions indefinitely, citing national security concerns. It is unlikely Congress would be in a position to take any action to challenge Trump’s moves until lawmakers return to Washington.

It took almost a year for Graham to persuade Trump to agree to the Russian sanctions package. It was designed to impose steep tariffs on countries that import large amounts of Russian oil and energy products and was promoted as way to halt the flow of funds fueling Putin’s four-year war against Ukraine.

But even as Zelensky had watched from the visitor gallery as the Senate advanced the package after Graham’s death, skeptics in Congress warned Trump would be unlikely to follow the bill once he had signed it into law a month ago.

Last week, a bipartisan group of senators urged the Trump administration to more quickly clamp down on Russia, particularly the “shadow fleet” of tankers that Moscow is using to transport oil and bypass America’s sanctions. The senators noted that the bulk of the new law’s provisions were to be effective Sunday.

Instead, Trump soon announced the diesel deal with Putin, saying that Russia had agreed to supply tons of fuel to the U.S., where gas prices have skyrocketed in some areas and voters saying affordability issues are a top concern.

Outraged lawmakers have pledged to stop the Trump-Putin deal.

New York Rep. Gregory Meeks, the ranking Democrat on the House Foreign Affairs Committee who had led opposition to the Graham bill — warning that Trump would flout the law — introduced legislation Friday that would block Trump’s diesel deal with Putin.

“At a time when the United States should be increasing pressure on the Kremlin, Donald Trump is cozying up to Putin and striking self-enriching deals instead of standing with Ukraine,” Meeks said in a statement.

He called the deal “corrupt” and said it “goes against everything the United States stands for.”

Mascaro writes for the Associated Press. Associated Press writers Kevin Freking and Mary Clare Jalonick contributed to this report.

Negotiators aim to present a proposal to Russia in the coming weeks, meanwhile Putin says resumption of talks unlikely.

Russian President Vladimir Putin has said an immediate resumption of peace talks with Ukraine is unlikely, citing drone attacks on Moscow during parliamentary elections last month.

In a phone call with US President Donald Trump on Friday, Putin said Moscow was ready to resume negotiations with Kyiv after the parliamentary elections. However, the drone attacks on the capital made the resumption of trilateral peace talks between Russia, Ukraine and the US unlikely.

“By launching a large-scale drone attack on Moscow, other cities and polling stations on the most important day of the elections, and by targeting some people involved in organising the elections, the Kyiv regime has, in reality, interrupted the possibility of an immediate resumption of the negotiation process,” said Kremlin foreign policy aide Yuri Ushakov about the call with Trump.

“As the president said, we will now assess when these negotiations can resume,” he added regarding the trilateral talks.

US Secretary of State Marco Rubio said on Thursday that Russia’s war in Ukraine is at a dangerous stalemate and the United States will keep working towards a deal to end the war.

Ukrainian President Volodymyr Zelenskyy said earlier this week that the country was ready to hold trilateral talks with the United States and Russia this month.

US-Russia diesel deal

Earlier on Friday, Donald Trump announced after the call with Putin that Russia agreed to deliver more than 300,000 tonnes of diesel to American and global markets.

The deal was criticised by US lawmakers, Zelenskyy and European allies.

Zelenskyy called the agreement a “gift to Putin”.

“All that money goes toward the war against people, against Ukraine, against all of us. I believe our team is simply being used as a smokescreen. And that is certainly not fair,” he said in a statement.

In response to the US-Russia diesel deal, a government spokesperson said the United Kingdom would continue to “maintain pressure on Russia through the toughest sanctions regime ever imposed by the UK.”

The Russian and Iranian presidents met in Turkmenistan ahead of regional summit.

Russian President Vladimir Putin has told Iranian President Masoud Pezeshkian that Russia will “do everything” to help end the United States-led war on Iran, Russian news agencies reported.

The two leaders met in Turkmenistan on Thursday ahead of the summit of the Commonwealth of Independent States, a group of former Soviet nations.

“You know our position. On our part, we are ready to do everything we can to help you resolve this situation,” Interfax news agency said Putin told Pezeshkian.

“We know that Iran is making real efforts to end the conflict, which broke out through no fault of its own, no fault of Iran’s,” Putin said, according to Russian media.

Putin also noted what he called a “positive evolution” in Iran-Russia relations.

In a call on Wednesday, Putin told Pezeshkian that Moscow is prepared to mediate efforts to end the war in the Middle East, Iran’s IRNA news agency reported.

Putin and Pezeshkian also met on the sidelines of the Shanghai Cooperation Organisation summit in Kyrgyzstan last month.

Strategic partnership

The two countries, which are under heavy Western sanctions, have reinforced diplomatic and military ties.

Last year, Moscow and Tehran signed a “comprehensive strategic partnership treaty” that covers areas from trade and military cooperation to science, culture and education.

Ukraine and Western countries have accused Iran of supplying Russia with Shahed drones and short-range missiles for use in the Ukraine war. Russia has also been accused of supplying data to Iran for its attacks on US targets in the Middle East.

The meeting came as Iran-US talks stand at an apparent impasse.

US President Donald Trump said on Thursday that the US will not launch an attack on Iran before the November 3 US midterm congressional elections, saying the two countries are ‌‌holding “productive” talks about ending the ongoing war.

Diplomatic efforts to resolve Russia’s offensive in Ukraine also appear deadlocked, even as both sides intensify attacks.

Putin warned the West he would deploy nuclear weapons if necessary to defend the Russian Baltic exclave of Kaliningrad.

Russian President Vladimir Putin has ruled out a ceasefire on long-range strikes with Ukraine as Moscow steps up its campaign of aerial attacks on Kyiv.

“We are told: ‘Let them stop striking your refineries, and you will stop striking their ships.’ It is simply ridiculous,” Putin said on Thursday at the Valdai political forum in Moscow.

The remarks followed a meeting between United States President Donald Trump and Ukrainian President Volodymyr Zelenskyy in New York on September 22, when Zelenskyy said Kyiv was ready to cease strikes on Russian oil refineries and other energy facilities if Moscow also stopped its attacks on Ukrainian energy infrastructure.

Speaking at the forum of the Moscow-based think tank, Putin said Ukraine had “partially achieved its objectives” with ⁠these strikes, with attacks on Russian ⁠oil refineries having cost the country 1 percent of its gross domestic product (GDP), but added that Russia ⁠was now responding in kind.

Russia has ramped up long-range strikes, targeting Ukraine’s steel companies as well as supply chains, notably in the rail sector. Ukraine accuses Moscow of deliberately hitting civilian targets and keeping Kyiv on a near-constant state of alert as it braces for another tough winter.

A Russian drone struck a school in Kyiv on Thursday, according to city officials, as the Ukrainian capital endured relentless aerial attacks. No casualties were reported as children and staff at the school were in shelters when the drone hit.

Putin added that Russia would prefer to end the conflict in Ukraine through talks and wanted it to ⁠be a neutral ⁠country after the end ⁠of hostilities.

The nuclear option

He warned the West not to escalate the standoff over Ukraine by threatening the Russian exclave of Kaliningrad, which is wedged between Poland and Lithuania, and pledged to defend it with nuclear weapons if necessary.

“If it comes to a direct attack on the Russian Federation – in this case, we are referring to Kaliningrad, and perhaps other territories as well – the question of the Russian Federation deploying all the weapons at our country’s disposal will, of course, inevitably and immediately be on the agenda,” he said.

Putin’s comments followed a diplomatic note which NATO said this week it had received from Russia, warning the Western military alliance it would be ready to resort to nuclear weapons if NATO attempted to cut off Russia’s Baltic exclave.

Putin warned that cycles of escalation in international conflict ⁠could quickly lead to dangerous scenarios. “We must realise that the moment when nothing can be changed any longer may come very quickly and unexpectedly for everyone. The logic of escalating, increasingly harsh retaliatory measures leads to a fatal point of no return,” ⁠he said.

On the contrary, in the event of a “favourable scenario”, Putin said the assets of Western companies that Moscow had seized could potentially be returned. Putin last month ordered the seizure of businesses and assets of Swiss food giant Nestle, French retailer Auchan, the former Leroy Merlin DIY chain and German wholesaler and food retailer Metro.

As US President Donald Trump announced a $15bn steel megaplant while seated at his Oval Office desk on Monday, he had a lineup of mostly US politicians standing behind him – from cabinet members to elected representatives from Iowa, where the mill is to be built. There was one exception: an Indian man with a receding hairline and a lilac pocket handkerchief, standing behind the US president’s right shoulder.

Ravi Ruia is a cofounder of the Essar Group, which owns Mesabi Metallics, the Minnesota-based firm that’s building the steel mill, which is expected to be the United States’s largest once it is complete. A decade earlier, in October 2016, his brother Shashi was in the photo frame with a different president during the signing of another major deal: Russian leader Vladimir Putin.

Steel and metallics aren’t Essar’s only association with minerals and natural resources. The conglomerate had been involved for years with oil, before it sold one of India’s largest private oil refineries to a Russian-led consortium in 2016 for nearly $13bn. Essar Oil was rebranded as Nayara Energy.

Today, Nayara Energy is half-owned by Russian gas major Rosneft, which is under heavy US and European sanctions over Moscow’s war on Ukraine. Nayara has also emerged as a supplier of petroleum products to Russia at a time when the country is facing a fuel crisis following multiple Ukrainian attacks on its oil and gas depots.

And as part of a 99-year deal, Nayara is continuing to use Essar’s branding in India, where the company runs thousands of petrol stations. Nayara is under European Union sanctions.

The White House is touting the Iowa steel project, unveiled just before the US midterm elections, as a major economic win for Americans, promising hundreds of jobs and billions of dollars in revenue. And there is no evidence that the steel project is in violation of any Russia-specific US sanctions.

But Trump’s announcement of a mega project with an Indian firm closely tied to Russian investments under Western sanctions underscores how the US has struggled to isolate Moscow economically despite an unprecedented economic pressure campaign.

And the timing of the steel mill announcement raises questions, because it comes days after Trump signed a law that empowers him to punish countries that buy Russian oil with up to 100 percent tariffs. India is Russia’s second-largest oil buyer. But the legacy Indian conglomerate that best epitomises the country’s links to Russian energy is now also behind the US’s biggest steel factory.

What’s the steel factory project about?

The new project would integrate its iron ore mining operations in Minnesota’s Mesabi Iron Range with the upcoming steel complex in Iowa.

The White House and the company’s announcements said that the Iowa steel plant is expected to create at least 1,750 permanent jobs – “while continuing to work with suppliers and businesses throughout Iowa and the Midwest” – and support up to 6,000 construction jobs.

Washington also noted that the mill will produce 7.5 million tonnes of steel per year in its first phase, expected to rise to 10 million tonnes. First steel production is expected in 2030.

The first phase of the project is expected to generate $95bn in total economic impact during construction and its first 10 years of operation, according to the White House.

Trump’s commerce secretary, Howard Lutnick, told the reporters that “these are your 232 tariffs, the steel tariffs at work.” He added: “Without those tariffs, this mine and steel plant doesn’t get built.”

Trump chipped in, too. “Soon after my inauguration, I imposed powerful 50 percent tariffs on all foreign steel, and now our steel industry is roaring back to life,” Trump said. “Everyone’s building their plant here because they don’t want to pay tariffs.”

But the steel project is also evidence of how countries and companies have skirted US economic pressure – and how it gives them leverage to continue to do so.

What are Essar’s ties to Russia?

Essar Oil, the group’s energy arm, began refining crude in 2008 at its refinery in Vadinar on the coast of the western Indian state of Gujarat.

But by 2016, the company was in deep debt, listed as a defaulter by the Reserve Bank of India, the country’s central bank, and desperately looking for a buyer who would take over its oil operations. The timing was opportune. President Putin in Russia was at the time trying to get Rosneft, his country’s energy giant, to offload some stakes in exchange for foreign capital.

Indian Prime Minister Narendra Modi played matchmaker, helping stitch together a series of deals between 2014 and 2016 that helped Rosneft and Essar. First, Indian public sector oil majors bought stakes in Rosneft, giving it the cash it needed. Rosneft, in turn, joined hands with other investors to buy the Vadinar refinery, freeing Essar from its debts.

Essar Oil became Nayara Energy – a company in which Rosneft owns a 49 percent stake, and United Capital Partners, a Russian asset management company, owns another 49 percent. The buyers paid Essar $12.9bn for the deal. As part of the agreement, Nayara got to use Essar’s branding – including on thousands of petrol stations across India – for 99 years.

Is Nayara under Western sanctions?

Yes. The European Union imposed sanctions on Nayara in July last year as part of the broader 18th package of sanctions against Russian oil.

The sanctions banned the import of petroleum products processed using Russian crude oil and restricted the refinery’s access to EU shipping insurance, as well as financial and other services.

Nayara’s Vadinar refinery in western India has been processing only Russian oil since other suppliers backed out following the sanctions. Since then, Nayara has relied on international traders to import crude and export refined fuels.

In July this year, Nayara Energy sold petroleum to Russia as Ukrainian attacks targeted oil refineries across the country, triggering a fuel crisis.

In recent months, Ukrainian forces have targeted Russian oil facilities, setting them ablaze and causing long lines for fuel across the country, including in the capital, Moscow. The fuel crisis, unprecedented for Russia, a country that is one of the world’s biggest energy producers, has led to rationing in many regions.

These Russian links have brought Nayara Energy under wider scrutiny, prompting companies, including SAP, to suspend services to the refiner, citing sanctions and obligations under EU law.

Nayara challenged the move in the Delhi High Court, which ordered SAP India to restore its services earlier this month.

Are Essar or the steel plant violating any sanctions?

While Nayara is under EU sanctions, Essar does not face any US or EU sanctions.

In October 2016, after Essar struck its deal with Rosneft and United Capital Partners to sell the Vadinar refinery, the US – at the time under the Barack Obama administration – said that the agreement was not in violation of any sanctions.

“I don’t think we see any violation of any US-EU sanctions stemming from this deal,” State Department spokesperson Mark Toner said at the time. Essar also said that the deal was compliant with US sanctions.

There is no evidence of any sanctions breach in Essar’s investment in Mesabi, or in the planned investment to set up the steel factory in Iowa.

But Essar’s relations with Russia have nevertheless attracted scrutiny, including in the United Kingdom, where the Ruia brothers have long had major investments.

At the time of the sale of the Vadinar refinery to Russian buyers, the Russian bank VTB also gave Essar a $3.9bn loan for debt reconstruction.

The bank was hit by major US and EU sanctions in February 2022, right after Russia’s full-fledged invasion of Ukraine. Essar, reporting published in April 2026 by The Guardian and investigative journalism platform SourceMaterial, showed, moved the VTB loan to Mauritius, a tax haven, allegedly to avoid the sanctions. Essar owns the Stanlow oil refinery in the UK.

Why is the timing of the steel plant announcement significant?

Trump’s Republican Party is heading for crucial midterm congressional elections in November, while his approval rating has been plumbing all-time lows in the face of voter concerns about inflation, the cost of living, and the war on Iran.

In his second term, Trump has made tariffs and a revival of US manufacturing a cornerstone of his economic vision, claiming that higher barriers to imports will drive investment back to the US.

Moreover, Washington introduced legislation that would allow the president to impose tariffs of up to 100 percent on imports from countries that continue economic engagement with Russia or Iran, aiming to put pressure on countries that continue buying Russian energy.

New Delhi is particularly exposed since it became one of the largest buyers of discounted Russian crude after the invasion of Ukraine in 2022. Trump imposed an additional 25 percent tariff on Indian imports in 2025 over the issue, before removing it in February 2026 after India committed to stop buying Russian crude.

Russia has remained India’s largest source of crude, although purchases have declined as the threat of US penalties has grown. The news agency Reuters reported that India imported approximately 2.1 million barrels per day of Russian crude in August.

There is also a recent parallel to underscore the incentives for investment in Trump’s US. In May this year, Washington moved to dismiss the criminal fraud and bribery charges against Indian billionaire Gautam Adani, while his lawyers had told the Justice Department that Adani was prepared to invest $10bn in the United States. A federal judge subsequently dismissed the criminal case in August.