The administration of US President Donald Trump is considering lifting sanctions on Russia's flagship state investment fund, the Russian Direct Investment Fund, which is regarded as one of the Kremlin's most powerful tools of international influence.
Source: The New York Times , citing sources, as reported by European Pravda
Details: Sources said Russian officials have been pushing for sanctions on the fund to be lifted as part of broader negotiations over its involvement in supplying Russian diesel fuel to the United States.
A US official confirmed that the administration is considering the fund's application for sanctions relief as part of efforts to " improve US-Russia relations and help end the war ".
The official praised the fund's head, Kirill Dmitriev, who is involved in negotiations to end Russia's war against Ukraine, describing him as " a helpful envoy ".
The lifting of sanctions on the multi-billion-dollar Russian Direct Investment Fund would be a significant reversal of years of US efforts to use economic pressure to force Russia to end its war against Ukraine. The fund has invested billions of dollars in Russian companies, often alongside investors from the Middle East and other regions, helping to expand Russia's global influence.
The Biden administration imposed sanctions on the fund days after Russia's full-scale invasion of Ukraine began in 2022, describing it as a " slush fund " for Russian ruler Vladimir Putin and a symbol of " Russia's broader kleptocracy ".
Eric Green, a diplomat who oversaw Russia policy on the US National Security Council at the time, said sanctions against the institution had been an early priority because the fund's access to the Western financial system could have helped Russia finance the war.
The Russian Direct Investment Fund now has a leading role in implementing Trump's diesel deal with Russia.
Dmitriev has been acting as Putin's economic envoy in talks with the Trump administration, spearheading the Kremlin's efforts to convince US officials of the significant potential for business deals with Russia.
Trump's team believes that making business deals with Putin now could help end the war in Ukraine by demonstrating to 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 putting pressure on him to end the war.
Meanwhile, the US Treasury Department is following its standard procedure for reviewing applications for sanctions relief. According to sources familiar with the process, this means the fund will have to demonstrate that the reasons for which sanctions were imposed no longer apply.
Background: Earlier, Reuters reported that the Trump administration is considering easing sanctions on vessels belonging to Russia's shadow fleet , which transport oil and petroleum products, including from Russia, Iran and Venezuela. The New York Times also reported recently that the Trump administration offered Russia several options for economic incentives if it agreed to an energy or maritime ceasefire with Ukraine.
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