In a video address to the World Economic Forum in Davos, former U.S. President Donald Trump outlined his strategy to end the war in Ukraine: lowering global oil prices. The Ukrainian government has welcomed his proposal.
Trump Links Oil Prices to War Financing
Speaking from Washington, Trump emphasized that reducing oil prices would undermine Russia’s ability to finance its war against Ukraine. “If the price drops, the Russian-Ukrainian war will stop immediately,” Trump stated. “Right now, the price is high enough to keep the war going.”
He further announced plans to negotiate with Saudi Arabia and OPEC to lower oil costs, stating, “I will ask Saudi Arabia and OPEC to reduce oil prices. The price must come down.”
Energy’s Role in Russia’s War Economy
Russia, a major energy exporter, has been funding its war effort through oil sales, particularly to India and China. Western attempts to curb this revenue stream—such as U.S. oil embargoes, EU price caps, and sanctions on tankers—have so far failed to achieve the desired impact.
Trump also suggested increasing domestic oil production in the U.S. to flood the global market with supply, which would drive prices down further. “Reducing the price is the way to end the war,” he said.
Ukraine Supports Trump’s Approach
Trump also expressed his intention to meet with Russian President Vladimir Putin to negotiate peace, although he has yet to present a concrete plan for resolving the conflict. Putin has previously signaled a willingness to engage in dialogue and discuss potential compromises.
Andriy Yermak, head of Ukraine’s presidential administration, welcomed Trump’s proposal. “We support U.S. President Donald Trump’s desire to reduce oil prices. As a result, Russia’s ability to fund the war will collapse,” Yermak said on Telegram. He emphasized that the goal should be to bring oil prices down to $30 per barrel. “A sharp drop in prices is also the path to global security,” he added.
Currently, a barrel of WTI crude oil costs over $74, while OPEC oil exceeds $80 per barrel.
