Russia and US discussing sanctions relief for Moscow’s sovereign wealth fund, Kremlin aide says

Russia and US Discussing Sanctions Relief for Investment Fund

Earthguardiansonline.com – Russia and US discussing sanctions relief for Moscow’s sovereign wealth fund has become a new point of scrutiny in efforts to negotiate an end to the war in Ukraine. The talks concern the Russian Direct Investment Fund, or RDIF, a state-owned fund that has been under US sanctions since Russia’s full-scale invasion of Ukraine in February 2022.

Yuri Ushakov, a foreign policy adviser to Russian President Vladimir Putin, said the issue had been under discussion for some time. He said he could not say whether the fund would ultimately be removed from the US sanctions list.

“What the outcome will be, I do not know.”

RDIF chief executive Kirill Dmitriev, who is also a presidential envoy, has engaged with US officials on the question of possible sanctions relief, Ushakov said. A US official described Dmitriev as a useful intermediary for American negotiators involved in discussions about ending the conflict.

According to the official, the administration is reviewing RDIF’s request to be delisted through its standard process. The review is tied to stated goals of improving relations between Washington and Moscow and supporting a potential agreement to end the war.

Why the Russian Direct Investment Fund matters

The Russian Direct Investment Fund is closely associated with the Kremlin. When the Biden administration imposed sanctions on the fund after the 2022 invasion, US officials described it as a financial vehicle linked to Putin and people in his inner circle.

The restrictions were part of a broader Western campaign to limit Russia’s access to capital and reduce the resources available to support its military campaign. Any decision involving the fund could therefore carry wider diplomatic significance, potentially indicating a willingness to reduce economic pressure on Moscow as negotiations continue.

The Russia and US discussing sanctions issue comes as President Donald Trump has defended recent decisions that eased some Russia-related restrictions. Those moves have drawn criticism from lawmakers in Washington and raised concerns among some Western allies.

Energy policy adds to concerns over concessions

Earlier in October, Trump announced an arrangement allowing Russian diesel to enter global energy markets. He also waived another set of sanctions involving Russian fossil-fuel sales that had only recently become law.

The paused legislation could have imposed tariffs of up to 100% on certain US imports from the five largest buyers of Russian crude oil or natural gas. Income from Russian energy exports remains important to the Kremlin’s ability to finance the war.

The diesel arrangement pauses export sanctions for six months and allows sales at market prices. Its effect on global diesel prices remains unclear, and energy experts have questioned whether it will substantially alter worldwide supply conditions.

Russia halted diesel exports in early July after Ukrainian drone attacks on refineries contributed to fuel shortages inside the country. The White House has sought to reduce pressure from oil and diesel prices in the United States ahead of midterm elections.

“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.

Ukraine and European leaders monitor the talks

Kyiv has consistently called for stronger limits on Russian energy exports, arguing that they are necessary to restrict funding for Moscow’s war effort. Ukrainian officials and many European leaders are concerned that further US concessions could be offered in pursuit of an agreement acceptable to Putin.

Trump has linked higher global fuel prices to Ukraine and urged Ukrainian President Volodymyr Zelensky to stop attacks on Russian refineries. Those requests have come as Russia continues strikes on Ukrainian communities, cities and energy facilities.

Zelensky has warned that easing sanctions could give Putin greater capacity to continue the war. The disagreement highlights the divide between Kyiv’s push for sustained economic pressure and the US administration’s focus on maintaining negotiations with Moscow.

FAQ for US readers

What is the RDIF? The Russian Direct Investment Fund is Russia’s state-owned sovereign wealth fund. It was sanctioned by the United States after Russia began its full-scale invasion of Ukraine in 2022.

Why are Russia and US discussing sanctions relief? US officials are reviewing RDIF’s application to be removed from the sanctions list as part of a broader diplomatic process intended to improve relations and support talks on ending the war.

Would delisting RDIF end sanctions on Russia? No. Removing restrictions on one fund would not automatically eliminate the wider US sanctions framework targeting Russia’s economy, energy sector or individuals tied to the Kremlin.