Donald Trump’s first week as the 47th President of the United States marked a convergence of sanctions policies from both administrations. The restrictions imposed by Biden struck a heavy blow to CRINK nations, while Trump’s unexpected moves have caused tensions across the globe, including in Ukraine. Meanwhile, a Chinese startup challenged both the effectiveness of U.S. tech sanctions and advanced American AI models.
China and India Stop Buying Russian Oil Due to U.S. Sanctions
The Biden administration’s sanctions, particularly targeting over 180 vessels in the “shadow fleet,” have effectively cut off India and China from Russian oil.
As the availability of tankers for transporting Russian crude dwindled, freight costs skyrocketed. For instance, before the sanctions, shipping oil from Russia’s Kozmino port to China cost around $1.5 million. Now, that number has ballooned to $6.5–7.5 million, creating a significant pricing gap between sellers and potential buyers in Asia.
Bharat Petroleum Corp Ltd’s Chief Financial Officer told Reuters the company hadn’t received new orders for March deliveries, which usually arrive mid-month.
In 2024, Russian oil accounted for 36% of India’s imports and nearly a fifth of China’s. That figure is expected to approach zero in 2025.
U.S. Senate Fails to Pass Sanctions Against ICC
The U.S. Senate couldn’t muster enough votes to pass a bill imposing sanctions on officials of the International Criminal Court (ICC), with Democrats blocking the measure. The bill garnered 54 votes in favor but needed 60 to advance.
Previously approved by the House of Representatives, the bill proposed sanctions against ICC judges and prosecutors who initiated investigations against high-ranking Israeli officials, including Prime Minister Benjamin Netanyahu.
Opponents, mainly Democrats, argued that such sanctions would undermine the international legal system and harm relations with European allies.
Chinese Startup Challenges U.S. Tech Sanctions
Chinese firm DeepSeek unveiled its R1 AI model, rivaling Western counterparts but at a fraction of the cost. This development caused a drop in shares of American tech giants and raised questions about the effectiveness of U.S. export controls aimed at stifling China’s military-tech advancements.
DeepSeek optimized its training processes to reduce GPU loads significantly, allowing it to compete with top U.S. AI models despite using GPUs that are half as powerful due to U.S. sanctions.
Trump’s Blitz on Colombia
On Sunday, two U.S. planes were set to return a group of illegal migrants to Colombia, but Colombian President Gustavo Petro publicly denied them landing rights. In response, Trump announced a 25% tariff on all Colombian imports and visa sanctions against the Colombian leadership.
By the end of Monday, Colombia agreed to accept the deported individuals, averting the sanctions and marking a noticeable victory for Trump both domestically and internationally.
Trump’s Ultimatum to Putin: Peace or Devastating Sanctions
Trump issued a similar ultimatum to Moscow. If Putin refuses to negotiate ending the war in Ukraine, the U.S. will impose heavy taxes, sanctions, and tariffs on all Russian goods exported to the United States.
However, the statements had little immediate impact, with the Kremlin dismissing them as nothing new.
Gazprom Faces Financial Struggles, Plans Price Hikes for Russians
Meanwhile, sanctions continue to weigh heavily on Russia. Gazprom reported financial difficulties and plans to raise gas prices for the public.
From July 2025, gas tariffs will increase by 10.3%, following a previous hike of 11.2% in 2024. Prices for Russian electricity companies and housing and utilities sectors will rise even more — by 21.3%.
This seems to be Gazprom’s attempt to cover net losses of 309.1 billion rubles for the first nine months of 2024.
USAID Funds Frozen
Donald Trump signed an executive order temporarily suspending all U.S. foreign aid programs for 90 days, pending a review to ensure they align with his political goals.
For Ukraine, this means an immediate halt to all non-military aid provided through the U.S. Agency for International Development (USAID), affecting frontline communities, internally displaced persons, critical infrastructure, the Ministry of Digital Transformation, NGOs, media, cultural projects, and more.
Ukraine’s parliamentary committee on humanitarian and information policy has started consultations to possibly replace U.S. aid with European funding. President Zelensky has instructed that some programs be funded domestically.
Meanwhile, the Federal Court in the District of Columbia has temporarily halted Trump’s decision to freeze aid in response to a lawsuit filed by the activist group Democracy Forward. They argued that the administration’s decision violates the First Amendment and the Administrative Procedure Act, which governs the rulemaking process of the executive branch. A final ruling is expected on February 3.
A separate lawsuit was filed in Providence, Rhode Island, following the ruling by attorneys general from 22 states and the District of Columbia. They are also seeking to block Trump’s efforts to freeze funding while his administration reviews whether the spending aligns with his policy priorities.
That wraps up this week’s sanctions news. Follow ESCU’s pages to get the next digest next week.