Another Concession to Moscow: The US May Lift Sanctions on Russia's Main State Fund

According to *The New York Times*, a U.S. official, speaking on condition of anonymity, confirmed that the fund’s proposal is being considered with the aim of improving bilateral relations and contributing to ending the war. The source also described the organization’s head, Kirill Dmitriev, as a helpful mediator for the negotiators.

The Fund’s Role in Russian Fuel Exports

Discussions about easing restrictions demonstrate the Kremlin’s attempt to use diplomatic contacts surrounding the war in Ukraine to advance its own economic interests. In recent weeks, representatives of Donald Trump and Vladimir Putin have been negotiating the sale of a stake in a Russian oil giant, gas production in Alaska, and an increase in fuel exports to Europe.

Lifting sanctions against the Russian Direct Investment Fund would mark a significant departure from the long-standing strategy of economic pressure on Moscow. For years, the organization has raised billions of dollars with the participation of partners from the Middle East to strengthen the Kremlin’s influence around the world.

Now the fund has taken on a key role in implementing agreements on the supply of Russian diesel to the U.S. following the suspension of fuel restrictions on October 9. Russian Deputy Prime Minister Alexander Novak stated that it was thanks to substantial support from Kirill Dmitriev’s organization that three tankers set sail for American shores in October with substantial support from Kirill Dmitriev’s organization.

“It was very, very pleasant to deal with Kirill,”said Steve Witkoff, Special Envoy for Peace Missions, during talks with Vladimir Putin in St. Petersburg.

Donald Trump’s team believes that striking business deals will help end the war and demonstrate to Moscow a willingness to build mutually beneficial relations. At the same time, critics – including members of the Republican Party – are convinced that this approach provides the Kremlin with economic benefits without any obligation to stop its aggression.

Debate Over Lifting Sanctions

Speaking at a conference in Moscow on October 16, Kirill Dmitriev stated that the fuel deal proves the sanctions philosophy to be flawed. He assured that his fund is ready to process U.S. payments, although he did not publicly mention the demand to lift sanctions against the organization itself.

The U.S. Department of the Treasury is evaluating the fund’s request according to standard procedure, which requires evidence that the original reasons for imposing sanctions have been eliminated. Until now, nearly all of the restrictions from previous years remained in effect; however, the head of the Russian fund has established a direct dialogue with the U.S. president’s inner circle.

“The ice has finally broken,”– emphasized Kirill Dmitriev, adding that economic agreements with the United States should be implemented now, not after the war ends.

As a reminder, the United States previously imposed sanctions against the Russian Direct Investment Fund shortly after the start of Russia’s full-scale invasion of Ukraine in 2022.

At the time, the U.S. administration called the fund a corrupt vehicle for Vladimir Putin, whose access to Western finances could be used to finance the war.