Kremlin confirms talks on lifting US sanctions on Russian Direct Investment Fund

Sanctions relief on the table

Russia and the United States are discussing whether to lift American sanctions on the Russian Direct Investment Fund, a state investment fund that manages billions of dollars. Russian state media, citing a Kremlin adviser, reported the talks. Yuri Ushakov, foreign policy adviser to Vladimir Putin, said on Wednesday, 28 October, that the discussions have been under way for some time and that he does not know their outcome. He added that Kirill Dmitriev, who heads the fund and serves as Putin's special envoy, is actively involved in contacts with American officials. Washington imposed the sanctions under Joe Biden after Russia's invasion of Ukraine in February 2022, and officials there have described the fund as a vehicle for financing opaque transactions by Putin and his inner circle.

Washington's review and political reaction

The New York Times reported on Tuesday, 27 October, that the Trump administration was considering the request. An American official who spoke to the paper said Washington is assessing the fund's request through the usual procedures, in what the official framed as an effort to improve US-Russia relations and help end the war. Criticism of the recent concessions to Moscow has come from both Democrats and Republicans. Democrats in Congress argue that Trump is too eager to strike business deals with Putin and too reluctant to press Russia to end the war in Ukraine. The White House is also seeking to ease pressure on oil and diesel prices in the United States ahead of the midterm elections.

Earlier relief for Russian energy

Earlier in October, Trump announced a temporary lifting of sanctions on Russian diesel, allowing exports to the American market and other destinations. Russian government vice-chairman Alexander Novak said on Tuesday that a fourth diesel tanker was due to leave on Wednesday. Trump also exempted certain Russian fossil fuel sales from sanctions and suspended legislation that would have imposed tariffs of up to 100% on goods from the five countries importing the largest volumes of Russian oil or natural gas. He further signed an executive order lifting sanctions and tariffs on Russian goods, along with secondary sanctions tied to purchases of Russian oil and gas. The revenue from these sales is described as vital for financing the Kremlin's war effort.

Abu Dhabi track on Ukraine

Separately, efforts to end the war in Ukraine are moving toward a trilateral meeting in Abu Dhabi with delegations from Kyiv and Moscow and American officials. In the first phase, the meeting is scheduled for 10 November. Ukrainian President Volodymyr Zelensky wants the first-stage agenda to cover de-escalation measures, including prisoner exchanges, a halt to attacks on energy infrastructure and a ceasefire in the Black Sea. Technical teams would also examine the format of a possible future summit between Trump, Zelensky and Putin.

Security guarantees are the central issue for Kyiv. Zelensky does not intend to accept a deal that he believes would leave Ukraine exposed to a new Russian attack, and he wants those guarantees to come from Europe, the United States or NATO. Putin is expected to raise security guarantees for Russia as well, including limiting or even reversing NATO's military presence in the wider region. The territorial question is also described as especially difficult to resolve.

Open questions

It remains unclear whether Europe will have a seat at the table when the critical decisions are taken, and who would represent it. European officials who spoke on condition of anonymity raised this question. The talks are taking place under the shadow of the war in Iran.