Trump administration explores lifting sanctions on Russia’s flagship investment fund

President Donald Trump’s administration is considering lifting sanctions on the Russian Direct Investment Fund, Russia’s flagship investment fund, according to a report^1,2,3. The reports describe the step as under consideration, not decided^2,3.

The fund has been described as “emblematic of Russia’s broader kleptocracy”¹, and critics have called it a “slush fund” for Russian ruler Vladimir Putin³. Its head, Kirill Dmitriev, has close ties with Putin and his family and has met repeatedly with Trump envoy Steve Witkoff⁴.

The idea would add to a series of steps toward Moscow^5,7. Trump has already waived sanctions on Russia as it wages war against Ukraine⁵. This month he struck an agreement with Putin to ease sanctions in exchange for concessions from Moscow⁷. Relations between the US and Ukraine and its European allies have soured since Trump agreed to lift some sanctions from Russia¹¹.

Why it matters to investors

Business deals are now part of the peace negotiations^8,9. The US and Russia are discussing broad oil and energy deals in the Ukraine talks, with Dmitriev and Witkoff acting as the two leaders’ envoys⁸. Among the notes on Witkoff’s pad during his visit to Moscow last week were two words: “Business Deals”⁹. Witkoff discussed potential business deals with Putin at a St. Petersburg meeting in early September¹⁰.

The fund under review is run by one of the two envoys at the centre of those talks^4,8. One report described the talks as covering a $14 trillion economic deal to end the war¹⁰.

The energy side of the rapprochement is already visible⁶. Three tankers carrying Russian diesel are crossing the Atlantic toward US ports⁶, and Russia has said the three tankers are en route to the US⁷. Trump’s fuel deal with Moscow faces growing opposition and a legal showdown⁶.

What to watch

The first marker is whether the administration moves from consideration to a formal decision on the fund^2,3.

The second is the diesel shipments. The arrival of the three Russian tankers⁷ and the legal fight over the fuel deal⁶ will show how far the easing has gone in practice.

The third is resistance at home. McConnell warned Trump against making more concessions to Russia⁵, and any relief for the fund¹ would be a further concession of the kind he warned against⁵.