Trump administration weighs lifting sanctions on Russian fund once called Putin's 'slush fund' - NYT
The Trump administration is considering lifting sanctions on Russia's sovereign investment fund, which the United States previously described as President Vladimir Putin's "slush fund," The New York Times reported on October 27.
According to the newspaper, Russian officials have pushed for sanctions relief for the Russian Direct Investment Fund (RDIF) during negotiations over its role in arranging Russian diesel shipments to the United States.
A US official confirmed that the Treasury Department was reviewing the fund's application through established procedures as part of efforts to "improve U.S.-Russia relations and help end the war."
The official also praised RDIF chief Kirill Dmitriev, who has served as Putin's economic envoy in talks with Washington, calling him "a helpful envoy."
The Biden administration sanctioned RDIF shortly after Russia's full-scale invasion of Ukraine in February 2022, describing it as "a slush fund" for Putin and a symbol of Russia's broader kleptocracy.
The potential reversal comes as the Trump administration pursues economic cooperation with Moscow as an incentive to negotiate an end to the war.
Diesel shipments and sanctions relief
On October 9, Trump authorized a temporary suspension of sanctions restrictions on Russian diesel exports, presenting the move as part of an agreement with Putin.
RDIF subsequently helped arrange shipments of Russian diesel to the United States. Russian officials say three tankers carrying the fuel have departed for the US this month.
According to the NYT, the fund sought broader sanctions relief while offering to act as an intermediary for the shipments.
However, the US Treasury Department concluded that the October 9 authorization already provided sufficient permission for RDIF to handle the diesel transactions.
The department is nevertheless reviewing the fund's separate application for sanctions removal. Under the established process, RDIF would have to demonstrate that the grounds for its original designation no longer apply.
No decision to lift the sanctions has been announced.
A broader push for economic deals
Dmitriev has played a central role in promoting potential US-Russia business agreements, working with Trump's envoys Steve Witkoff and Jared Kushner.
The NYT reported that discussions have also included potential investments in Russian energy assets, natural gas production in Alaska and expanded Russian gas exports to Europe.
Trump's administration argues that the prospect of economic cooperation could encourage Moscow to end the war. Critics, including some Republican lawmakers, warn that offering economic benefits before a settlement would reduce pressure on Russia without securing concessions in return.