Kremlin Confirms Ongoing Talks to Lift Sanctions on Russian Wealth Fund

US and Russian officials are actively negotiating the removal of sanctions against Russia's state-owned direct investment fund, according to a Kremlin aide who spoke to reporters on Wednesday.

Yuri Ushakov, the foreign policy aide to Russian President Vladimir Putin, told TASS that discussions regarding the Russian Direct Investment Fund have been ongoing for some time. He noted that the fund's chief executive and presidential envoy, Kirill Dmitriev, has been in direct contact with American counterparts to advance the talks. Ushakov declined to predict the final outcome of the negotiations, stating simply that he did not know how the process would conclude.

The sanctions in question were imposed by the Biden administration in February 2022, shortly after Russia launched its invasion of Ukraine. Washington labeled the fund a known slush fund for Putin and his inner circle, targeting its multibillion-dollar assets. The New York Times first reported on Tuesday that the Trump administration was considering lifting these restrictions.

This development follows a series of recent concessions made by the White House regarding Russian energy exports. Earlier this month, President Donald Trump announced a deal suspending fuel export sanctions for six months. This waiver allows Russian diesel to be sold at market prices and halts a new law that would have imposed tariffs of up to 100% on goods from the five largest importers of Russian crude oil or gas. The suspended legislation was designed to target revenue streams that fund the Kremlin's war machine.

Trump defended these measures on his Truth Social platform on October 18, writing that he does not want to do anything that will drive Russia away from the bargaining table. He framed the waivers as a strategic decision to keep Moscow engaged in peace negotiations. The White House also cited a desire to relieve pressure on oil and diesel prices in the United States ahead of the midterm elections scheduled for next week.

The concessions have drawn criticism from both political parties in Washington and have strained relations with Western allies. Ukrainian President Volodymyr Zelensky told NBC's Meet the Press that the waivers strengthened Putin's position while Russia faced setbacks on the battlefield. Kyiv has long argued for stricter sanctions on Russian energy exports and expressed anxiety that further American concessions could weaken Ukraine's leverage.

Russia banned diesel exports in early July after Ukrainian drone strikes on its refineries caused widespread fuel shortages. Despite these internal issues, the Kremlin remains focused on economic cooperation. Last week, Putin indicated readiness to resume trilateral peace talks with the US and Ukraine after mid-November, following a meeting with US special envoy Steve Witkoff in St. Petersburg. The White House and the US Department of State have not yet provided comment on the latest reports regarding the investment fund.

The diesel deal involves suspending sanctions to allow for market-priced sales, though experts have questioned the impact on global markets. The White House continues to pursue these economic adjustments as part of its broader strategy to encourage a ceasefire in the Ukraine conflict.