Trump Weighs Lifting Sanctions on Russian Fund Behind Diesel Exports to U.S.

The Trump administration is considering lifting sanctions on the Russian Direct Investment Fund (RDIF), a sovereign wealth fund previously described by Washington as President Vladimir Putin's "slush fund," as Moscow seeks to expand diesel sales to the U.S.

The review follows negotiations in which Russian officials sought sanctions relief for RDIF in connection with its proposed role in facilitating fuel exports, according to The New York Times, citing people familiar with the discussions.

No decision has been announced. The Treasury Department is examining RDIF's request through its established sanctions removal process.

Diesel Trade Creates Opening for Sanctions Relief

The discussions accelerated after President Donald Trump suspended sanctions on Russian diesel on October 9.

RDIF subsequently offered to facilitate transactions between Russian exporters and U.S. buyers while pressing Washington to remove restrictions on the fund itself.

A U.S. official confirmed that the administration was evaluating the application "through established procedures" as part of efforts to "improve U.S.-Russia relations and help end the war."

The Treasury Department requires sanctioned entities seeking removal from its blacklist to demonstrate that the grounds for their original designation no longer apply.

Treasury has indicated that RDIF already possesses the necessary authorization to participate in Russian diesel transactions, meaning broader sanctions relief is not required for the shipments to proceed.

Russian Tankers Head to U.S. Ports

Three tankers carrying Russian diesel departed for the U.S. during October, according to the report.

Russian Deputy Prime Minister Aleksandr Novak attributed the shipments to RDIF's involvement, saying they had proceeded "with the significant support" of the fund.

One vessel, the Agioi Fanendes, departed Russia's Primorsk port on October 23 and is expected to reach the U.S. around November 7.

Its destination port has not been confirmed, nor has any payment by an American buyer.

Russian Foreign Minister Sergey Lavrov sought to separate the fuel shipments from broader diplomatic concessions.

Speaking on October 27, Lavrov described the diesel agreement as a commercial transaction without political conditions attached.

Putin's Economic Envoy Gains Access to Washington

At the center of the discussions is Kirill Dmitriev, RDIF's chief executive and Putin's special envoy for investment and economic cooperation.

Dmitriev has emerged as Moscow's principal economic contact with U.S. negotiators Steve Witkoff and Jared Kushner.

A U.S. official described Dmitriev as "a helpful envoy" in the negotiations.

Speaking in Moscow on October 16, Dmitriev criticized Western economic restrictions, arguing that sanctions were fundamentally misguided.

He also signaled optimism about the diplomatic opening, declaring: "The ice has finally broken."

The fund's engagement with Washington received further attention during meetings in St. Petersburg last week.

Witkoff praised Dmitriev directly to Putin, telling the Russian president: "It's been really, really good dealing with Kirill."

Witkoff separately informed Dmitriev that the Treasury Department was dealing with him independently, indicating a direct channel between the Russian fund and U.S. sanctions officials.

A Fund Sanctioned After the Ukraine Invasion

Washington imposed sanctions on RDIF, its management company and Dmitriev on February 28, 2022, shortly after Russia launched its full-scale invasion of Ukraine.

At the time, the Treasury Department described RDIF as "widely considered a slush fund for President Vladimir Putin."

Established in 2011, RDIF serves as Russia's sovereign wealth fund and previously financed the development of the Sputnik V coronavirus vaccine.

The restrictions have remained in place under Trump, whose administration has retained almost all Russia-related sanctions introduced during Joe Biden's presidency.

Removing RDIF from the sanctions list would therefore represent a significant departure from that approach, particularly if undertaken without a settlement to the war in Ukraine.

Former U.S. Officials Warn of Diplomatic Consequences

The potential removal has prompted warnings from former American officials who argue that easing economic pressure before a Ukraine agreement could weaken Washington's negotiating position.

Eric Green, who oversaw Russia policy at the National Security Council under Biden, said the move would send a "real strong message" that the U.S. was no longer making sanctions relief conditional on ending the conflict.

Daniel Fried, a former U.S. ambassador, also criticized the prospect of unilateral concessions.

Writing on X, Fried argued that such gestures of American goodwill could "impede negotiations by signaling weakness."

The administration has presented its engagement with RDIF as part of a broader effort to improve relations with Moscow and pursue an end to the war.

For now, the review remains an administrative process rather than an announced policy change.

Neither the Kremlin, Treasury Department nor RDIF had issued a public statement on the potential sanctions removal at the time of the report.