US and Russia in Talks to Ease Sanctions on Moscow's Sovereign Wealth Fund, Kremlin Aide Reveals

Discussions are underway between the Trump administration and the Kremlin regarding the potential lifting of United States sanctions on Russia's substantial sovereign wealth fund. This development, as reported by Russian state media and a Kremlin aide, could represent another significant concession from the US in ongoing negotiations aimed at resolving the conflict in Ukraine.

Yuri Ushakov, foreign policy aide to Russian President Vladimir Putin, informed reporters that talks with the US concerning the removal of sanctions on the state-owned Russian Direct Investment Fund have been ongoing for a considerable period. TASS, the Russian state news agency, quoted Ushakov on Wednesday stating, "What the outcome will be, I do not know." He also noted that Kirill Dmitriev, the fund's CEO and presidential envoy, has been actively engaged with American officials on this matter.

The Biden administration had previously imposed these sanctions following Russia's invasion of Ukraine in February 2022, characterizing the fund as a "known slush fund" for Putin and his close associates. CNN has reached out to the White House and the US Department of State for comment. The New York Times initially reported on Tuesday that the Trump administration was considering such a sanctions relief measure.

President Donald Trump has previously defended concessions made to Russia on sanctions, actions that have drawn criticism from across the political spectrum in Washington and strained relations between the US and its Western allies. Earlier in October, Trump announced an agreement to permit Russian diesel exports to global energy markets and waived a further set of sanctions related to Russian fossil fuel sales, which had only recently been enacted into law. The legislation that was forestalled would have imposed tariffs of up to 100 percent on various goods, including those imported into the US from the top five importers of Russian crude oil or gas, sales crucial for financing Russia's war efforts.

The US-Russia diesel deal entails a six-month suspension of fuel export sanctions to facilitate diesel sales at market prices. However, experts have expressed skepticism regarding its potential impact on global diesel markets. Russia had banned diesel exports in early July after Ukrainian drone strikes on its refineries led to widespread fuel shortages domestically. The White House's efforts to alleviate pressure on oil and diesel prices in the US appear to be timed ahead of crucial midterm elections.

Trump has also stated that his decision to waive certain sanctions on Russia was intended to maintain Moscow's presence at the negotiating table. In a Truth Social post on October 18, Trump wrote, "I am in the process of negotiating Peace in the war between Russia and Ukraine, and don’t want to do anything that will drive, foolishly, Russia away from the bargaining table."

Trump has attributed high global fuel prices to Ukraine and has exerted pressure on Ukrainian President Volodymr Zelensky to cease strikes on Russian refineries, even as Russia continues its attacks on Ukrainian towns, cities, and energy infrastructure. There is growing apprehension in Kyiv and Europe that the Trump administration might offer further concessions to Moscow in an attempt to secure a peace deal with Putin. Zelensky recently commented on NBC's "Meet the Press" that these waivers have bolstered Putin's war against Ukraine, despite Russia's struggles on the battlefield. Kyiv has consistently advocated for more stringent sanctions on Russian energy exports.

Last week, Putin indicated that the Kremlin would be prepared to resume trilateral Russia-US-Ukraine peace talks after mid-November, following a request from US special envoy Steve Witkoff, who met with the Russian leader in St. Petersburg. During these discussions, Putin expressed interest in re-establishing economic cooperation with the US.