Trump Administration Weighs Lifting Sanctions on Russia's Wealth Fund
The administration of US President Donald Trump is considering lifting sanctions on Russia's flagship state investment vehicle, the Russian Direct Investment Fund (RDIF), the New York Times reported on Tuesday, October 27, citing sources. The fund is widely seen as one of the Kremlin's most powerful tools of international influence.
According to the sources, Russian officials have pressed for the sanctions to be removed as part of broader negotiations on the fund's role in supplying Russian diesel fuel to the United States. One US official confirmed that the administration is reviewing the fund's application for sanctions relief as part of efforts to "improve relations between the US and Russia and help end the war." The official praised the fund's head, Kirill Dmitriev, who is involved in talks on ending the Russia-Ukraine war, as a "useful intermediary."
A reversal of years of pressure
Lifting sanctions on the multibillion-dollar fund would be a significant setback to years of US efforts to force Russia to end its war against Ukraine through economic pressure. The fund has invested billions of dollars in Russian companies, often alongside investors from the Middle East and elsewhere, helping to extend Russia's global reach. Joe Biden's administration sanctioned it a few days after Russia's full-scale invasion of Ukraine in 2022, calling it a "slush fund" for Russian ruler Vladimir Putin and a "symbol of broader kleptocracy in Russia."
Diplomat Eric Green, who then oversaw Russia policy on the US National Security Council, noted that sanctions on the institution were among the top priorities because the fund's access to the Western financial system could help Russia finance the war.
The fund's role in the "diesel deal"
Today the fund plays a leading role in Trump's "diesel deal" with Russia. Dmitriev has acted as Putin's economic envoy in talks with the Trump administration, leading the Kremlin's push to convince US officials of the great potential of business deals with Russia. Trump's team believes that striking business deals with Putin now could help end the war in Ukraine by showing the Kremlin leader that the US is serious about building new and prosperous relations with Moscow. Many critics of this approach, including some Republican lawmakers, argue that Trump is simply handing economic benefits to Putin without pressing him to stop the war.
The US Treasury Department is following its standard procedure for reviewing sanctions-relief applications, sources familiar with the process said. That means the fund will have to prove that the reasons for which it was sanctioned no longer apply.
Earlier, Reuters reported that the Trump administration was considering easing sanctions on so-called shadow fleet vessels that carried oil and petroleum products, including from Russia, Iran and Venezuela. Media reports also say the administration offered Russia several economic incentives if it agrees to a ceasefire with Ukraine in the energy sector or at sea. More in our politics section.