US weighs lifting sanctions on Russian investment fund amid diesel talks: Report

By Berk Kutay Gokmen

ISTANBUL (AA) - The Trump administration is considering lifting sanctions on Russia’s state-backed investment fund as part of broader discussions involving Russian diesel shipments to the US, The New York Times reported Tuesday.

The newspaper said Russian officials had pressed Washington to remove sanctions on the Russian Direct Investment Fund (RDIF), which has played a key role in facilitating the fuel shipments.

A US official confirmed that the fund’s application was being reviewed under established procedures, saying the move was part of efforts to “improve US-Russia relations and help end the war.”

The official also described Kirill Dmitriev, the fund's chief who serves as Russian President Vladimir Putin’s special envoy for international economic cooperation, as “a helpful envoy” to US negotiators working to end the war in Ukraine.

The administration of former US President Joe Biden imposed sanctions on the fund days after the start of the Ukraine war in February 2022, describing it as “a slush fund” for Putin.

According to the report, the fund has taken a leading role in arranging Russian diesel shipments to the US after Trump suspended sanctions on Russian diesel earlier this month.

Russian Deputy Prime Minister Alexander Novak said Friday that three tankers carrying Russian diesel had set sail for the US this month with “the significant support” of Dmitriev’s fund.

However, people familiar with the talks told the newspaper that US buyers had not yet paid for the shipments.

The Treasury Department has maintained that the measure already provided the necessary authorization for transactions involving Russian diesel.

The fund’s separate request for sanctions relief is being assessed through the department’s normal review process, according to the report.

Berk Kutay Gökmen