Trump Waives Russia Sanctions, Drawing Zelenskyy Rebuke and Reshaping Geopolitical Risk for Markets

What’s happening

President Trump waived virtually all new Russia sanctions he had previously signed, citing national interest under the Graham Act, despite bipartisan opposition and Ukrainian President Zelenskyy's public condemnation of the move as a "reward" for Putin. The action comes as Russian forces continue strikes on Ukrainian power infrastructure and marks a sharp reversal from prior sanctions escalation.

Market impact

Energy markets face renewed uncertainty as sanctions relief could lower oil and gas prices but increases volatility in shipping, defense, and European equities tied to Ukraine exposure. Defense contractors and European banks with Russia exposure will reprice; energy stocks may see near-term support but face longer-term geopolitical risk if conflict escalates.

Broader implications

The move signals Trump's pivot toward negotiated settlement over containment, reducing sanctions as a foreign-policy tool and emboldening Russia. This reshapes the risk calculus for multinational corporations with European operations and signals a potential reset in U.S.-Europe alignment on Russia policy.