The Trump administration is considering lifting sanctions on the Russian Direct Investment Fund (RDIF), a sovereign wealth fund that Washington previously described as a financial vehicle for President Vladimir Putin, as Moscow seeks to expand diesel exports to the United States.
The review follows discussions in which Russian officials reportedly sought sanctions relief for RDIF in exchange for its proposed role in facilitating fuel transactions, according to The New York Times, citing people familiar with the matter.
No final decision has been announced. The U.S. Treasury Department is reviewing the fund’s request under its established sanctions removal procedures.
Diesel Exports Open a Potential Path to Sanctions Relief
The discussions gained momentum after President Donald Trump suspended sanctions on Russian diesel on October 9.
RDIF subsequently offered to help connect Russian fuel exporters with American buyers while seeking the removal of restrictions imposed on the fund itself.
A U.S. official confirmed that the application was being assessed through established procedures as part of broader efforts to improve U.S.-Russia relations and help bring the war in Ukraine to an end.
Under Treasury Department rules, sanctioned entities seeking removal from the blacklist must demonstrate that the circumstances underlying their original designation no longer apply.
However, Treasury has indicated that RDIF already has the authorization needed to participate in Russian diesel transactions. This means that lifting the fund’s broader sanctions may not be necessary for the shipments to proceed.
Russian Diesel Tankers Head Toward the United States
Three tankers carrying Russian diesel reportedly departed for the United States during October.
Russian Deputy Prime Minister Aleksandr Novak credited RDIF with providing significant assistance in facilitating the shipments.
One vessel, the Agioi Fanendes, left Russia’s Primorsk port on October 23 and is expected to arrive in the United States around November 7.
Its final destination has not been confirmed, and there is no public confirmation that an American buyer has made payment for the cargo.
Russian Foreign Minister Sergey Lavrov sought to distinguish the fuel transactions from broader diplomatic negotiations. Speaking on October 27, he characterized the diesel arrangement as a commercial deal without political conditions.
Putin’s Economic Envoy Strengthens Contacts With Washington
A central figure in the discussions is Kirill Dmitriev, RDIF’s chief executive and Putin’s special envoy for investment and economic cooperation.
Dmitriev has become a key economic intermediary between Moscow and U.S. negotiators Steve Witkoff and Jared Kushner.
A U.S. official described Dmitriev as a helpful envoy in the negotiations.
During an appearance in Moscow on October 16, Dmitriev criticized Western sanctions, arguing that the restrictions were misguided. He also expressed optimism about the diplomatic engagement, saying, “The ice has finally broken.”
RDIF’s role in the discussions attracted further attention following meetings in St. Petersburg.
Witkoff reportedly praised his dealings with Dmitriev during a conversation with Putin, saying, “It’s been really, really good dealing with Kirill.”
Witkoff also told Dmitriev that the Treasury Department was communicating with him independently, highlighting the direct channel between the Russian fund and U.S. officials involved in sanctions matters.
A Fund Targeted After Russia’s Invasion of Ukraine
The United States 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 the fund as being widely considered a “slush fund” for Putin.
Established in 2011, RDIF is Russia’s sovereign wealth fund and has invested in a range of domestic and international projects. It also previously helped finance the development of Russia’s Sputnik V COVID-19 vaccine.
The restrictions have remained in place under Trump, whose administration has retained most Russia-related sanctions introduced during Joe Biden’s presidency, according to the report.
Removing RDIF from the sanctions list would therefore mark a notable shift in Washington’s approach, particularly if it occurred without a broader agreement to end the war in Ukraine.
Former U.S. Officials Warn Against Easing Pressure Too Soon
The prospect of sanctions relief has raised concerns among former American officials who argue that reducing economic pressure before securing an agreement on Ukraine could weaken Washington’s negotiating position.
Eric Green, who oversaw Russia policy at the National Security Council under Biden, warned that the move would send a “real strong message” that sanctions relief was no longer tied to ending the conflict.
Daniel Fried, a former U.S. ambassador, also criticized the possibility of unilateral concessions.
In a post on X, Fried argued that gestures intended to demonstrate American goodwill could “impede negotiations by signaling weakness.”
The Trump administration, meanwhile, has framed its engagement with RDIF as part of a broader effort to improve relations with Moscow and advance diplomatic efforts to end the war.
For now, the potential removal of sanctions remains under review. No formal policy change has been announced, and the Kremlin, Treasury Department and RDIF had not publicly commented on the possible decision at the time of the report.
The outcome could offer an indication of how far Washington is prepared to go in easing financial restrictions as it pursues renewed economic ties and diplomatic engagement with Russia.