U.S. envoy Steve Witkoff arrived in Moscow on Wednesday for urgent talks with the Russian leadership, two days before President Donald Trump‘s Friday deadline for Russia to agree to peace or face severe new sanctions targeting global oil trade.
High-Stakes Diplomatic Push
Witkoff was greeted by Kirill Dmitriev, Russia’s investment envoy and head of its sovereign wealth fund, reported Reuters. The Kremlin confirmed potential meetings with President Vladimir Putin but stopped short of official confirmation.
Sen. Lindsey Graham (R-S.C.) said Trump intends to impose 100% tariffs on countries purchasing Russian exports, with particular pressure on India and China. The move could impact energy markets and emerging economies, as these nations buy roughly 80% of Russia’s discounted oil.
Market Impact and Trade Tensions
The sanctions ultimatum has already triggered market volatility. Energy ETFs showed mixed performance, with the iShares U.S. Oil & Gas Exploration & Production ETF IEO gaining 0.60% at $88.43 while the United States Oil Fund USO declined 1.43% to $75.02 on Tuesday.
India, facing substantial tariff threats, counters that European Union goods trade with Russia totaled €67.5 billion in 2024, while the U.S. imported $5.2 billion in Russian goods and services, including uranium hexafluoride and palladium.
Limited Diplomatic Prospects
Three Kremlin sources told Reuters that Putin remains skeptical of compromise, believing military objectives outweigh improved U.S. relations. Austrian analyst Gerhard Mangott called Witkoff’s mission “a last-ditch effort to find a face-saving solution.”
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