Trump team considers unfreezing Russian fund to help close diesel deal

The Trump administration is reviewing a request to lift sanctions on the Russian Direct Investment Fund, a move that would reverse a key part of the US economic pressure campaign against Moscow. The fund, valued in the billions of dollars, is widely seen as a major tool for the Kremlin to project influence globally. Sources told The New York Times that Russian officials have pushed for this relief as part of ongoing talks about supplying Russian diesel fuel to the United States.

A US official confirmed that the administration is actively considering the fund's application for sanctions relief. The official stated the goal is to improve US-Russia relations and assist in ending the war in Ukraine. The official specifically praised Kirill Dmitriev, the head of the fund, calling him a helpful envoy in the current peace negotiations.

Dmitriev has served as Vladimir Putin's economic envoy in discussions with the Trump team. He is leading efforts to persuade US officials that new business deals with Russia are viable. The White House believes that facilitating these deals now could demonstrate to Putin that the US is serious about building prosperous new relations with Moscow.

However, the approach faces criticism. Some Republican lawmakers argue that the strategy hands economic benefits to Putin without applying enough pressure to force an end to the war. Eric Green, who oversaw Russia policy at the US National Security Council during the Biden administration, noted that the fund was targeted early because its access to Western finance could help Russia fund the war.

The Biden administration sanctioned the fund days after Russia's full-scale invasion of Ukraine began in 2022. At the time, officials described the fund as a slush fund for Putin and a symbol of broader kleptocracy. The fund has since invested billions in Russian companies, often partnering with investors from the Middle East and other regions.

The US Treasury Department is currently processing the application through its standard procedure for sanctions relief. Sources familiar with the process say the fund must prove that the original reasons for the sanctions no longer apply. This review happens as the administration also considers easing sanctions on vessels in Russia's shadow fleet and offers other economic incentives tied to an energy or maritime ceasefire.

The fund now plays a leading role in implementing Trump's diesel deal with Russia. If the Treasury approves the relief, it will mark a major shift in the US stance, moving from using financial isolation to encourage a war's end, to using potential business partnerships as a negotiating lever.