Trump weighs lifting sanctions on Russian sovereign wealth fund tied to Putin slush fund

The Trump administration is weighing whether to lift sanctions on Russia's sovereign wealth fund, long identified as a slush fund for Vladimir Putin, raising concerns that economic pressure on Moscow to end the war in Ukraine could be significantly weakened.

According to The New York Times, the Trump administration is reviewing a sanctions-relief request submitted by the Russian Direct Investment Fund, or RDIF, reported Tuesday (local time).

A US official confirmed to the Times that the administration is considering RDIF's request as part of efforts "to improve US-Russia relations and help end the war in Ukraine."

RDIF is a multibillion-dollar Russian sovereign wealth fund widely regarded as a vehicle for Putin's illicit finances and a symbol of Russian political corruption. The United States designated it a sanctions target in 2022, shortly after Russia launched its full-scale invasion of Ukraine.

RDIF CEO Kirill Dmitriev was also placed on the sanctions list at the time. Dmitriev serves as a close aide to Putin and acts as his economic envoy.

The Trump administration, however, has taken a favorable view of Dmitriev's diplomatic role. The US official described him as a "helpful envoy" to American negotiators in discussions aimed at ending the war in Ukraine.

The review of potential sanctions relief is also linked to the so-called diesel deal recently pursued by the United States and Russia.

Trump suspended related sanctions on Oct. 9, allowing Russian diesel to be exported to the United States and other countries. According to a senior Russian official, RDIF subsequently played a leading role in implementing the deal, providing substantial support in coordinating the shipment and transport of Russian diesel bound for the US.

Trump's team believes that business dealings with Putin could help bring the war in Ukraine to an end — the logic being that demonstrating the United States is serious about building a new and prosperous relationship with Russia could draw Putin to the negotiating table.

Critics, including some Republican lawmakers, warn that this approach risks yielding economic concessions to Russia rather than pressuring Moscow to end the war.

The New York Times said Russia has been using the recent uptick in peace diplomacy to advance agendas with little direct bearing on an actual peace settlement.

Lifting sanctions on RDIF in particular, the Times said, could substantially undermine US efforts to change Russian behavior through economic pressure.

RDIF has invested billions of dollars in Russian companies alongside investors from the Middle East and other regions, advancing Russia's push to expand its global influence.

Eric Green, who oversaw Russia policy at the National Security Council under a previous administration, also criticized the move toward sanctions relief.

Green told the Times that lifting sanctions on RDIF "would send a very powerful message that the United States is backing away from its prior position of not lifting sanctions on Russia until the war in Ukraine is resolved."