World

Trump Administration Considers Lifting Sanctions on Russia’s Sovereign Wealth Fund

By Sanchari Ghosh

The Trump administration is evaluating a request to lift sanctions on the Russian Direct Investment Fund (RDIF), a multibillion‑dollar sovereign wealth fund backed by the Russian government. The move comes as Washington looks for ways to engage Moscow in business deals while pursuing a resolution to the war in Ukraine. If the sanctions were removed, the Kremlin would gain greater access to international financial markets and could expand its investment partnerships abroad.

The RDIF was sanctioned by the Biden administration shortly after Russia’s 2022 invasion of Ukraine. U.S. officials described the fund as a “slush fund” for President Vladimir Putin and a symbol of Russia’s broader kleptocracy. Eric Green, who headed Russia policy at the White House National Security Council when the sanctions were imposed, said the target was chosen early because the fund’s access to Western finance could help Russia fund the war.

The Trump administration sees business negotiations with Russia as a potential lever to improve bilateral relations and encourage a Ukrainian cease‑fire. A U.S. official confirmed that the administration is reviewing the fund’s application through established procedures as part of an effort to “improve U.S.–Russia relations and help end the war.”

Kirill Dmitriev, the RDIF chief, has become a key Russian economic envoy in talks with Washington. Trump’s special envoy Steve Witkoff praised Dmitriev, telling Putin that dealing with him had been “really, really good.”

Critics argue that easing sanctions could give Moscow economic benefits without securing concessions on Ukraine. Green warned that lifting sanctions would send a strong message that the U.S. was willing to relax economic pressure only after a settlement in Ukraine.

Russia stands to benefit from improved access to international financial channels, expanded investment opportunities, and greater scope for business partnerships. The fund has also been involved in shipping Russian diesel to the United States. Russian officials said three tankers carrying diesel had set sail for the U.S. this month, with Deputy Prime Minister Aleksandr Novak citing the fund’s “significant support.” Dmitriev has sought sanctions relief for his fund while helping arrange the diesel deal.

The U.S. Treasury Department notes that the October 9 suspension of sanctions already permits the relevant diesel transactions. The RDIF must still demonstrate that the reasons for its original designation no longer apply to secure full sanctions removal. Dmitriev has argued that the deals could change American attitudes toward sanctions, saying: “Sanctions are, in principle, philosophically wrong.”