Key Takeaways
- • The Trump administration and the Kremlin are discussing lifting US sanctions on the Russian Direct Investment Fund (RDIF), Russia's multibillion-dollar sovereign wealth fund, according to CNN citing Russian state media.
- • Kremlin foreign policy aide Yuri Ushakov said the talks had been "going on for some time" and that he did not know the outcome, per TASS and Reuters.
- • The Biden administration imposed the sanctions after Russia's February 2022 invasion of Ukraine, describing the fund as a "known slush fund" for Putin and his inner circle.
- • The potential move follows a US-Russia diesel deal that suspends fuel export sanctions for six months and waived sanctions tied to Russian fossil fuel sales, drawing criticism in Washington and concern among Kyiv and European allies.
- • RDIF CEO Kirill Dmitriev, who is also a Kremlin presidential envoy, is reportedly engaging US officials on the sanctions relief.
Summary
The Trump administration and the Kremlin are discussing the possible lifting of US sanctions on the Russian Direct Investment Fund, Russia's state-owned sovereign wealth fund, CNN reported, citing Russian state media. Such a move would mark another US concession to Moscow in negotiations to end the war in Ukraine. The New York Times first reported on Tuesday that the Trump administration was considering the step.
Yuri Ushakov, foreign policy aide to President Vladimir Putin, told reporters that talks on lifting the sanctions had been "going on for some time," according to TASS and Reuters. "I don't know what the outcome will be," he said, adding that fund chief executive Kirill Dmitriev, who is also a presidential envoy, was actively engaging US officials on the issue. The Biden administration imposed the sanctions after Russia's invasion of Ukraine in February 2022, describing the fund as a "known slush fund" for Putin and his inner circle. CNN said it had contacted the White House and the State Department for comment.
The discussions follow a series of sanctions-related concessions. Earlier this month, Trump announced a deal allowing Russian diesel exports to global energy markets, suspending fuel export sanctions for six months and allowing sales at market prices. The administration also waived a further set of sanctions related to Russian fossil fuel sales that had only recently been signed into law. Those actions have drawn criticism from both sides of the aisle in Washington and strained relations with Western allies. Experts have questioned the effect of the diesel deal on global diesel markets. Russia had banned diesel exports in early July after Ukrainian drone strikes on its refineries triggered fuel shortages.
The White House is seeking to ease pressure on US oil and diesel prices ahead of midterm elections next week. Trump has said the waivers were intended to keep Moscow at the negotiating table, writing in a Truth Social post on October 18 that he did not want to "foolishly" drive Russia away from the bargaining table. Trump has also blamed high global fuel prices on Ukraine and pressed President Volodymyr Zelensky to halt attacks on Russian refineries.
Kyiv and European governments have voiced concern that Washington may make further concessions to persuade Putin to agree to a peace deal. Zelensky told NBC's "Meet the Press" that the waivers had strengthened Putin's war effort. Last week, Putin said the Kremlin would be ready to resume trilateral Russia-US-Ukraine peace talks after mid-November, following a request from US special envoy Steve Witkoff, who met him in St. Petersburg, and expressed interest in restoring economic cooperation with the United States.
Yuri Ushakov, foreign policy aide to President Vladimir Putin, told reporters that talks on lifting the sanctions had been "going on for some time," according to TASS and Reuters. "I don't know what the outcome will be," he said, adding that fund chief executive Kirill Dmitriev, who is also a presidential envoy, was actively engaging US officials on the issue. The Biden administration imposed the sanctions after Russia's invasion of Ukraine in February 2022, describing the fund as a "known slush fund" for Putin and his inner circle. CNN said it had contacted the White House and the State Department for comment.
The discussions follow a series of sanctions-related concessions. Earlier this month, Trump announced a deal allowing Russian diesel exports to global energy markets, suspending fuel export sanctions for six months and allowing sales at market prices. The administration also waived a further set of sanctions related to Russian fossil fuel sales that had only recently been signed into law. Those actions have drawn criticism from both sides of the aisle in Washington and strained relations with Western allies. Experts have questioned the effect of the diesel deal on global diesel markets. Russia had banned diesel exports in early July after Ukrainian drone strikes on its refineries triggered fuel shortages.
The White House is seeking to ease pressure on US oil and diesel prices ahead of midterm elections next week. Trump has said the waivers were intended to keep Moscow at the negotiating table, writing in a Truth Social post on October 18 that he did not want to "foolishly" drive Russia away from the bargaining table. Trump has also blamed high global fuel prices on Ukraine and pressed President Volodymyr Zelensky to halt attacks on Russian refineries.
Kyiv and European governments have voiced concern that Washington may make further concessions to persuade Putin to agree to a peace deal. Zelensky told NBC's "Meet the Press" that the waivers had strengthened Putin's war effort. Last week, Putin said the Kremlin would be ready to resume trilateral Russia-US-Ukraine peace talks after mid-November, following a request from US special envoy Steve Witkoff, who met him in St. Petersburg, and expressed interest in restoring economic cooperation with the United States.
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