Trump Team Weighs End to Sanctions on Russian Fund

The Trump administration is evaluating a request to lift sanctions on the Russian Direct Investment Fund, a move that would reverse a core economic pressure tool used against Moscow since 2022. The fund, viewed as a key instrument of Kremlin influence, is currently central to the US-Russia diesel fuel deal.

Russian officials have pushed for the sanctions removal as part of wider negotiations regarding the supply of Russian diesel to the United States. A US official confirmed the administration is considering the fund's application for sanctions relief. The stated goal is to improve US-Russia relations and help end the war in Ukraine.

The fund was sanctioned by the Biden administration days after Russia's full-scale invasion of Ukraine began in 2022. At the time, the US described the entity as a slush fund for Vladimir Putin and a symbol of Russian kleptocracy. Eric Green, a former National Security Council diplomat, noted that cutting off the fund's access to Western finance was an early priority to limit Moscow's war funding capabilities.

Kirill Dmitriev, the fund's head, has served as Putin's economic envoy in recent talks with the White House. A US official described Dmitriev as a helpful envoy in the peace process. The Trump team believes that sealing business deals with Putin now signals a serious commitment to building prosperous relations with Moscow. Critics, including some Republican lawmakers, argue this approach hands economic benefits to Putin without maintaining sufficient pressure to end the conflict.

The Treasury Department is following its standard procedure for reviewing sanctions relief applications. Sources familiar with the process say the fund must demonstrate that the original reasons for the sanctions no longer apply. This review comes as the administration also considers easing sanctions on vessels in Russia's shadow fleet, which transport oil from Russia, Iran, and Venezuela.

The potential lifting of sanctions on the multi-billion-dollar fund represents a shift from years of economic isolation. The fund has invested in Russian companies alongside Middle Eastern investors, helping expand Russia's global footprint. The administration has also offered Russia economic incentives if it agrees to an energy or maritime ceasefire with Ukraine.

The review process is underway within the Treasury Department. The decision will hinge on whether the fund can prove the conditions that led to its sanctioning have changed. The outcome will directly affect the fund's role in implementing the Trump diesel deal.