US and Russia Discuss Lifting Sanctions on Sovereign Wealth Fund, Kremlin Says
Negotiations are currently underway between the Trump administration and the Kremlin regarding the potential removal of United States sanctions on Russia’s multibillion-dollar sovereign wealth fund. Kremlin foreign policy aide Yuri Ushakov confirmed to reporters that discussions concerning the Russian Direct Investment Fund have been ongoing for some time, though he noted the final outcome remains uncertain. “What the outcome will be, I do not know,” he added. According to the New York Times first, On Tuesday that the Trump administration was considering lifting the sanctions.
As part of these efforts, the fund’s CEO and presidential envoy, Kirill Dmitriev, has been actively engaged with American officials to secure a lift on the current restrictions. These sanctions were originally implemented by the Biden administration following the February 2022 invasion of Ukraine, at which time the US characterized the fund as a slush fund for Vladimir Putin and his inner circle.
The possibility of relief for the fund has drawn significant political scrutiny, particularly as the administration faces criticism from domestic opponents and international allies regarding its recent concessions toward Moscow. Earlier this month, President Donald Trump finalized an arrangement to permit Russian diesel exports to global markets, while simultaneously waiving a series of fossil fuel sanctions that had been signed into law. The forestalled legislation aimed to impose tariffs reaching 100% on imports from major Russian crude and gas suppliers, a sector that remains vital to financing the Kremlin’s military operations. Among other things, goods brought into the US from the five largest importers of Russian crude oil or gas, the sale of which is crucial to funding, the forestalled legislation would have imposed tariffs of up to 100% on. Has reached out to the White House and US Department of State for comment.
The administration’s diesel agreement involves a six-month suspension of export sanctions to facilitate sales at market rates, a move designed to alleviate pressure on American fuel prices ahead of midterm elections. However, the decision has been met with skepticism from analysts regarding its actual impact on global markets. Russia had previously imposed a domestic ban on diesel exports in July after Ukrainian drone strikes targeted its refineries, causing internal shortages.
President Trump has defended these waivers as a strategic necessity to keep Moscow engaged in diplomatic talks, stating via social media on October 18 that he hopes to avoid actions that would foolishly drive Russia away from the bargaining table. The president has frequently placed the onus for high fuel costs on Ukraine, urging President Volodymyr Zelensky to cease attacks on Russian energy infrastructure. “I am in the process of negotiating Peace in the war between Russia and Ukraine, and don’t want to do anything that will drive, foolishly, Russia away from the bargaining table,” Trump wrote in a Truth Social post on October 18.
Conversely, the administration’s approach has sparked anxiety in Kyiv and throughout Europe. President Zelensky recently stated on NBC’s Meet the Press that these sanctions waivers effectively strengthen Russia’s military efforts at a time when its battlefield position has weakened. Kyiv has consistently lobbied for more aggressive restrictions on Russian energy.
Diplomatic channels remain active, with Vladimir Putin signaling a readiness to resume trilateral peace talks with the US and Ukraine after mid-November. This development follows a meeting between the Russian leader and US special envoy Steve Witkoff in St. Petersburg, where the prospect of restoring economic ties between the two nations was discussed. Anna Chernova, Kevin Liptak, David Goldman, Matt Egan, Ivana Kottasová, Jennifer Hansler, Tim Lister and Daria Tarasova-Markina contributed to this report.
